Suppose that David buys the same number of energy drinks every weekend no matter what happens to the price of the energy drinks. What does this suggest about David's demand for energy drinks?
A. It is elastic.
B. It is perfectly inelastic.
C. It is unit elastic.
D. It is not something that can be characterized without knowing the prices of the energy drinks.
Answer: B
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
An increase in the price of a complement for product A would:
a) Shift demand for product A out to the right. b) Shift demand for product A into the left. c) Shift supply for product A out to the right. d) Shift supply for product A in to the left.
Payroll tax puts a wedge between the wages firms pay and the wages workers earn due to ______.
a. which party the tax is levied against b. the inelasticity of supply relative to demand c. whether the supply or demand curve is shifted d. the fact that firms essentially pay the tax twice
If a local car dealership can sell 8 cars per day at a price of $25,000 each, but must reduce the price to $24,000 to sell one more car, what is the marginal revenue of the 9th car?
A. $216,000. B. $16,000. C. -$1,000. D. $24,000.