The price elasticity of demand of a straight-line demand curve is:
A. elastic in high-price ranges and inelastic in low-price ranges.
B. elastic but does not change at various points on the curve.
C. inelastic but does not change at various points on the curve.
D. 1 at all points on the curve.
Answer: A
You might also like to view...
The market demand is the:
a. sum of all individual demand curves in a market. b. sum of all individual prices in a market. c. sum of all individual demand curves and supplies in a market. d. vertical sum of all individual demand curves.
What are the costs and benefits of foreign trade? Explain.
What will be an ideal response?
In the long run, under perfect competition:
A) firms earn positive economic profit because of economies of scale. B) firms earn positive accounting profit because of government regulations. C) firms earn zero economic profit because of free entry and exit of firms. D) firms earn negative economic profit because of free entry and exit of firms.
A restriction of imports that is accomplished by a quota normally
A. can be accomplished also by a tariff. B. cannot be replicated exactly by imposing a tariff. C. can be accomplished also by an export subsidy. D. can be accomplished also by negotiations within GATT.