A demand relationship in which a given percentage change in price will result in a less than proportionate percentage change in quantity demanded is
A. elastic.
B. unit-elastic.
C. inelastic.
D. consistent with zero elasticity.
Answer: C
You might also like to view...
"When a person has an absolute advantage in producing a good, the person necessarily has a lower opportunity cost of producing it." Is this assertion correct or incorrect? Explain your answer
What will be an ideal response?
If the price of orange juice rises 10%, and as a result the quantity demanded falls by 10%, then one can conclude that the demand for orange juice
A) is perfectly elastic. B) is inelastic. C) has a unitary elasticity. D) has a constant elasticity.
An increase in production possibilities is known as
A. Economic growth. B. Factor expansion. C. Upward mobility. D. Predictable growth.
If a profit-maximizing firm is currently producing where MR = MC, it should
A. decrease output so that marginal revenue will be greater than marginal cost and the firm's profit will increase. B. exit the industry. C. not change because it is already maximizing profit. D. increase output so that marginal revenue is less than marginal cost.