For a given decrease in demand, the effect on price is smallest and the effect on quantity exchanged largest when:
a. supply is perfectly elastic
b. supply is elastic.
c. supply is unit elastic.
d. supply is perfectly inelastic.
a
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Which of the following would slow down productivity growth?
a. A change in the composition of the workforce so that more middle-aged people and fewer young people are working b. A change in the composition of the workforce so that organizations hire more men who work steadily throughout the year than men who frequently enter and leave the workforce c. The quality of education remaining unchanged d. People starting to invest more in capital goods e. Firms starting to cut down the size of their labor force
Which of the following causes the demand for veggie-burgers to increase?
a. A technological innovation that lowers the cost of producing veggie burgers. b. An increase in the price of tofu burgers, perceived as a substitute by veggie burger consumers. c. An increase in the price of burger buns. d. A decline in the price of veggie burgers.
The current account includes which of the following?
a. all international transactions in currently produced goods and services b. net income from foreign assets c. net unilateral transfers d. all of the above are included in the calculation of the current account
If a 5 percent fall in the price of a product causes the quantity demanded of the product to increase by 10 percent, the demand is:
A. perfectly elastic. B. elastic. C. inelastic. D. unit elastic.