A demand curve that is drawn as a vertical line has a price elasticity of demand equal to:
A. the quantity.
B. 0.
C. 1.
D. infinity.
Answer: B
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A common theme in the discussions of the airline, soft drink, doughnut, and express delivery industries is that oligopolistic firms tend to compete:
A) strictly on the basis of price and nothing else. B) strictly on the basis of cost minimization. C) primarily on the basis of product differentiation and price. D) primarily by erecting barriers into the market.
The idea behind the traditional industrial policy of import substitution is:
A. to protect infant industries until they can become price competitive in the world market. B. give certain industries a chance to enter a market and gain efficiencies that companies elsewhere in the world have already gained in that industry. C. build up home industries to compete with others in the world. D. All of these statements are true.
A government policy to improve farm incomes by supporting agricultural prices at a level above equilibrium will reduce consumer's surplus
Indicate whether the statement is true or false
_____ are changes in fiscal policy that stimulate aggregate demand when the economy goes into recession without policymakers having to take any deliberate action
Fill in the blank(s) with correct word