A perfectly elastic demand curve
A. has a slope of -1.
B. shows that a slight change in income will lead to a large reduction in price.
C. shows that a slight increase in price will reduce quantity demanded to zero.
D. is a vertical line drawn across from the quantity axis.
Answer: C
You might also like to view...
Suppose that Jesse Eisenberg had been offered a bigger and better part in another movie and that to hire him for The Social Network, the producer had to double Jesse's pay
What incentives would have changed? How might the changed incentives have changed the choices that people made?
A firm will continue to produce in the short run even though economic profits are negative as long as
A) the amount of the loss is no greater than the amount of fixed cost. B) MC = MR. C) it earned positive economic profits last year. D) it has fixed obligations to pay.
In the graph shown above, if the government set a price ceiling of $26.
A. there would be a permanent shortage, at least until the price ceiling was lifted.
B. there would be a temporary shortage, then the price would fall to equilibrium price.
C. price would rise to the equilibrium price.
D. price would immediately fall to the equilibrium price.
Which of the following variables is most directly determined in the labor market?
A) stock prices B) nominal wages C) interest rates D) all of the above E) none of the above