A perfectly inelastic demand means:
A. demand will drop to zero if the price increases by any amount.
B. consumers will change the quantity they purchase when price changes.
C. consumers will not change the quantity they purchase when price changes.
D. the demand curve is perfectly horizontal.
Answer: C
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Market economies are not constrained by scarcity; only planned economies have that problem.
Answer the following statement true (T) or false (F)
A second-price auction
a. is also called a Vickrey auction b. is where bidders submit increasing bids until all but one remains c. is where the sole remaining bidder wins and pays his winning bid d. all of the above
The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth
a. True b. False
Which of the following factors will not affect the profit expectations of business firms and change the level of investment?
a. Entry of new firms into the market b. Introduction of new taxes c. Announcement of new government subsidies d. The current level of GDP e. The marginal propensity to consume