We should never assume that an inelastic demand curve is a perfectly inelastic demand curve because

A) perfectly inelastic demand curves are rare.
B) an inelastic demand curve may be perfectly inelastic at some times but not others.
C) an inelastic demand curve may be elastic at low prices.
D) there has never been evidence of a perfectly inelastic demand curve.


A

Economics

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Planned investment spending ________

A) is equal to planned fixed investment spending plus government investment B) is unrelated to the real interest rate C) is heavily influenced by expectations about the future D) all of the above E) none of the above

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Refer to the game in Scenario 13.7. If each player chose a maximin strategy, the outcome would be

A) $69,000, $69,000. B) $0, -$1000. C) -$1000, $0. D) $0, $0. E) a mixed strategy equilibrium.

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When supply increases and at the same time demand decreases, we

A) can predict that both equilibrium price and quantity will increase. B) can predict that both equilibrium price and quantity will decrease. C) cannot predict equilibrium quantity, but know that equilibrium price will decrease. D) cannot predict the change in either the equilibrium quantity or equilibrium price.

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An industry with a high four-firm concentration ratio implies

a. firms have high supplier power b. firms have low supplier power c. buyers have a high supplier power d. buyers have a low supplier power

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