When the price of insulin is $10, consumers demand 100 units; when the price is $15, consumers demand 100 units; and when the price is $20, consumers demand 100 units. Based on this information, the demand for insulin is:
A. perfectly inelastic
B. elastic
C. unit elastic
D. perfectly elastic
Answer: A
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Throughout U.S. history, entrepreneurial activity would occur when
(a) centralized economic planning was involved (b) distributed rights to profits were clear and protected (c) government intervention was pervasive (d) all of the above
A price floor that is set above market equilibrium will cause
A) an excess quantity demanded. B) a shortage. C) a surplus. D) queuing on the part of consumers.
At a perfectly competitive firm's short-run break-even price
A) P = ATC. B) TR is more than TC. C) the average cost is below the total revenue line. D) P > AVC, but P < AFC.
A firm will not choose to produce if total variable costs exceed total revenue.
Answer the following statement true (T) or false (F)