A perfectly inelastic demand curve indicates that
a. a producer can sell as many units as desired at the market price but no units above the market price.
b. for a given percent change in price, the quantity demanded rises by the same percentage.
c. price has no effect on the quantity demanded.
d. the percent change in price is less than the percent change in quantity demanded.
C
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What would happen to an economy if the government funded an increase in spending with an equivalent increase in taxes?
What will be an ideal response?
Increases in ________ typically lead to decreases in consumption
A) the interest rate B) disposable income C) autonomous consumption D) all of the above E) none of the above
A package delivery service uses vans and employees to deliver the maximum number of packages given a fixed budget. The last van added 600 packages to total output, while the last employee added 500 packages. If vans cost $400 per week and employees earn $300 per week, the firm
A. could deliver more packages with the same budget by using more employees and fewer vans. B. could deliver more packages with the same budget by using more vans and fewer employees. C. should use more vans and fewer employees because the last dollar spent on vans added more to total output than the last dollar spent on employees. D. is delivering the maximum number of packages given the fixed budget. E. both b and c
Stock market price quotations best exemplify money serving as a:
A. index of satisfaction. B. store of value. C. unit of account. D. medium of exchange.