If the demand curve for tacos is a downward sloping straight line, at which of the following prices is the demand the most elastic?
A) a price of $0.50 per taco
B) a price of $1.00 per taco
C) a price of $1.50 per taco
D) There is not enough information given to determine at which price the demand is most elastic.
C
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The biggest wave of bank failures in the U.S. occurred:
A) during the Great Depression. B) before the Great Depression. C) during 2007 to 2009. D) in the early 1990s.
A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if
a. demand is elastic b. supply is inelastic c. demand falls d. demand is inelastic e. supply is unit elastic
The formula to compute the spending multiplier is:
a. 1 / (MPC + MPS). b. 1 / (1 ? MPC). c. 1 / (1 ? MPS). d. 1 / (C + I).
Within the framework of the AD/AS model, if a long-run equilibrium is present in the goods and services market,
a. decision makers will have accurately forecast the current price level when they arrived at resource price and loanable funds agreements. b. the profit rates of the firms will generally exceed the competitive level. c. the actual rate of unemployment will fall below the natural rate of unemployment. d. the current rate of output will be sustainable in the future. e. both a and d are correct.