A demand curve that is parallel to the horizontal axis is:
A. perfectly inelastic.
B. perfectly elastic.
C. relatively inelastic.
D. relatively elastic.
Answer: B
You might also like to view...
If women are not allowed to vote or inherit wealth but men are, this is an example of
A. A gender trap. B. An inequality trap. C. The liquidity trap. D. The disadvantaged trap.
If the Federal Reserve buys $500 of government securities when the required reserve ratio is 50 percent, the maximum potential change in the money supply is a(n)
A. decrease by $1,000. B. increase by $1,000. C. decrease by $500. D. increase by $500.
One reason why adverse selection problems arise in health insurance markets is that
A) sick people are more likely to want health insurance than healthy people. B) because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone. C) the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers. D) fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance.
An effective price support ________ producers and ________ a deadweight loss
A) has no effect on; does not create B) benefits; creates C) harms; creates D) benefits; does not create E) harms; does not create