If the percentage change in price is 10%, and the percentage change in quantity supplied is 0%, then the supply for the good is
A. elastic.
B. inelastic.
C. perfectly inelastic.
D. unit elastic.
Answer: C
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At an interest rate of 5 percent, the present value of $1,000 to be received three years from today is
A) less than $875. B) between $875 and $925. C) between $925 and $975. D) more than $975.
George has a $600 annual entertainment budget that he uses to buy trips to the movies and dinners at local restaurants. The figure above shows indifference curves and budget lines for these two goods. The price of a movie is $15
a) Along budget line BL1, what is the price of a dinner? b) What combination of dinners and movies will George select along budget line BL1? c) Budget line BL2 represents a change in the price of dinners from that along BL1. What is the new price of dinners along this budget line? d) What combination of dinners and movies will George select along budget line BL2? e) Use the information in this problem to give two points on George's demand curve for dinners.
When the government reduces my income tax by $0.30 for every $1.00 that I contribute to a charity, the government is effectively
a. alleviating the negative externalities that are associated with charitable giving. b. imposing a negative externality on those who do not pay income taxes. c. encouraging a private solution to a positive-externality problem. d. encouraging a private solution to a negative-externality problem.
Robert buys bonds. Rachel buys a new truck for her landscaping business. Identify both as savers, investors, both, or neither