If the demand curve is a horizontal line,
a. demand is perfectly elastic
b. demand is perfectly inelastic
c. demand is unitary elastic
d. demand is relatively inelastic
e. total expenditure is maximized
A
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Economists generally assume that the firm's goal is to
a. minimize its costs. b. maximize its profit. c. make its market share as large as possible. d. maximize its production.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
In the long run, the exchange rate between two currencies is
A) fixed. B) influenced by purchasing power parity. C) undefined. D) constant. E) determined so that the current account balance equals zero.
Refer to the above figure. Which point or points represent(s) a short-run equilibrium?
A) A only B) B only C) C only D) both A and B