In which of these instances is demand said to be perfectly inelastic?
a. An increase in price of 2% causes a decrease in quantity demanded of 2%.
b. A decrease in price of 2% causes an increase in quantity demanded of 0%.
c. A decrease in price of 2% causes a decrease in total revenue of 0%.
d. An increase in price of 2% causes a decrease in quantity demanded of 1/2%.
b
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A firm that has the ability to control to some degree the price of the product it sells
A) is also able to dictate the quantity purchased. B) faces a perfectly inelastic demand curve. C) is a price maker. D) faces a demand curve that is inelastic throughout the entire range of market demand.
If the price of the product produced by labor decreases, the marginal revenue product of labor curve will
A. shift to the left. B. be unaffected because productivity of labor has not changed. C. become more inelastic. D. shift to the right.
Our net investment income from foreign countries is
A. greater than foreign investor's income from U.S. investments. B. less than foreign investor's income from U.S. investments. C. about the same as foreign investor's income from U.S. investments. D. less than half foreign investor's income from U.S. investments.
Which of the following will be included in the calculation of GDP using expenditures to calculate it?
A) A worker's wage B) A domestic producer's export of clothes C) A firm's payment of employee bonuses D) A bank's payment of interest to its customers