?A perfectly elastic demand curve is
a. a vertical straight line
b. a horizontal straight line
c. a downward-sloping straight line
d. an upward-sloping straight line
e. not a straight line
Answer: b. a horizontal straight line
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Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Q = 20,000 - 400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. What is KGC's inverse demand function?
A. P = 20,000 - 400Q B. P = 400 - 20,000Q C. P = 50 - 0.0025Q D. P = 50 - 0.005Q
Cooperation:
A. is a mixed strategy. B. fails when the temptation to cheat is sufficiently strong. C. eliminates the temptation to cheat. D. is always a Nash equilibrium.
If the money supply curve is vertical, an increase in bond interest rates
A) is likely to cause banks to supply more money. B) is likely to cause banks to supply less money. C) has no effect on the money supply. D) is likely to cause the Federal Reserve to increase the money supply.
A firm can minimize its losses by shutting down when ________ are less than ________ costs.
A. variable costs; fixed B. fixed costs; variable C. operating profits; sunk D. revenues; variable