An extreme case in which a percentage change in price, no matter how large, results in zero change in quantity is called:
a. perfect inelasticity.
b. perfect elasticity.
c. strong elasticity.
d. weak elasticity.
a. perfect inelasticity.
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The division of labor can benefit society only if
A. a system of exchange exists. B. society uses all of its resources efficiently. C. society has no specialized resources. D. labor resources are not scarce.
An increase in the price level shifts the aggregate planned expenditure curve downward and results in a movement along the aggregate demand curve
Why does an increase in the price level result in a shift in the aggregate planned expenditure curve rather than a movement along it?
The figure above represents the competitive market for slices of key lime pie. If the production is 80 slices per day, the cost of the 80th slice is
A) less than anyone is willing to pay for it. B) more than anyone is willing to pay for it. C) equal to what someone is willing to pay for it. D) indeterminant. E) equal to the deadweight loss from the 80th slice.
Louey's Greasy Spoon restaurant charges $15 for each dinner entree and $5 for each dessert selection, and they offer a dinner special that provide an entree and dessert for $18
If a diner at Louey's assigns zero value to dessert and $19 to an entree, what is their optimal decision? A) Buy the dinner special B) Buy only the entree C) Buy only the dessert selection D) We do not have enough information to determine the optimal decision