If a demand curve for a good were completely vertical, it would be considered:
a. perfectly elastic.
b. perfectly inelastic.
c. of unitary elasticity.
d. relatively inelastic.
b
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Health care improvements often don't happen because:
A. they are too expensive to implement. B. doctors overprescribe and drive the cost of health care too high. C. health care facilities don't exist in some parts of the world. D. they are too expensive to have any significant impact.
Insurance companies practice statistical discrimination because:
A. young males are more likely than other groups to generate insurance claims. B. insurance markets aren't perfectly competitive. C. young males are willing to pay more for insurance than other groups. D. the demand for insurance is very inelastic.
Refer to Figure 23.1 for a perfectly competitive firm. This firm should shut down in the short run if the market price is below
A. $20. B. $10. C. $5. D. $15.
An increase in the inflation rate of one country relative to another country will probably cause
A. an increase in the amount of official reserves held by the inflating country's central bank. B. a balance of trade deficit for the inflating country. C. a current account surplus for the inflating country. D. an increase in exports for the inflating country.