Consider the following statements when answering this question. I. If no consumer has a kinked demand curve for CDs, then the market demand curve for CDs cannot be kinked either. II
If at a price of $10, every consumer has inelastic demand, then at that price the market demand for CDs will be inelastic too. A) I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) I and II are false.
D
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A Pareto optimum is a point that
A) a malevolent dictator would choose. B) a cooperative coalition of some altruistic consumers would choose. C) a cooperative coalition of some socially responsible firms would choose. D) a social planner would choose.
Monetarists are of the opinion that the private economy is inherently
A. unstable and the public sector should be small in scope. B. unstable and the public sector should be large in scope. C. stable, but that the public sector should be large in scope. D. stable and that the government sector should be small in scope.
Jeff Kaufman decides to bank with Paris First National Bank (PFN). He opens a checking account by depositing $1,000. According to the PFN balance sheet, after this initial $1,000 checkable deposit, there are $1,000 in:
A. reserves and $1,000 in checkable deposits. B. liabilities and $2,000 in checkable deposits. C. checkable deposits and $0 in assets. D. assets and $0 in liabilities.
Marginal cost begins to rise when
A) diminishing marginal product begins. B) diminishing marginal product ends. C) average total cost falls. D) fixed cost falls.