When the price of oysters decreases 25%, quantity demanded is unchanged. The price elasticity of demand for oysters is
A. inelastic.
B. perfectly inelastic.
C. elastic.
D. unitary elastic.
Answer: B
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If the market price in a competitive industry falls between a firm's AVC and ATC curves that firm is in the
A. short run making a profit. B. short run taking a loss. C. long run making a profit. D. long run taking a loss.
Over the last 20 years, Americans APC has
A. never been above 0.9. B. sometimes been above 0.9. C. usually been above 0.9. D. always been above 0.9.
Refer to the information provided in Table 31.1 below to answer the question(s) that follow.Table 31.1PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 60 50 2203 70 50 2354 80 50 245Refer to Table 31.1. When moving from Period 1 to Period 4, labor productivity
A. decreases. B. increases. C. does not change. D. first increases, then decreases.
Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100 . If the wage is $10 and the rental rate on capital is $20, the fixed cost is
a. $2,000 b. $200 c. $20,000 d. $0