On a straight-line downward-sloping demand curve, the maximum elasticity of demand occurs
A) at its vertical intercept.
B) at its midpoint.
C) at its horizontal intercept.
D) where it intersects the supply curve.
A
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When the social costs exceed the private costs, economists state that there is
A) a positive externality. B) an underproduction of output. C) a negative externality. D) social appreciation of resources.
Deadweight loss:
A. occurs in markets that are efficient. B. occurs when markets are in equilibrium. C. is the loss in surplus from a market not in equilibrium. D. is additional surplus from an additional market transaction.
The opportunity cost of holding excess reserves will be lower at an 8 percent federal funds rate in comparison to a 10 percent federal funds rate
a. True b. False Indicate whether the statement is true or false
How do changes in open market operations alter the monetary base, and how do changes in the monetary base translate to changes in the money supply?