At the profit-maximizing level of output, demand is
A) completely inelastic.
B) inelastic, but not completely inelastic.
C) unit elastic.
D) elastic, but not infinitely elastic.
E) infinitely elastic.
D
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The behavior of the entertainment industry in Detroit is a microeconomic topic
a. True b. False
In a perfectly competitive market, in response to a permanent increase in demand:
a. the short run equilibrium price will be higher than the eventual long run equilibrium price b. the short run equilibrium price will be lower than the eventual long run equilibrium price. c. the short run equilibrium price will be the same as than the eventual long run equilibrium price. d. we cannot know whether the short run equilibrium price will be above, below or equal to the eventual long run equilibrium price.
Appreciation of the U.S. dollar can be caused by
A. An increase in the demand for dollars. B. A decrease in the U.S. interest rate. C. An increase in the supply of dollars. D. A decrease in the demand for dollars.
The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. The amount of the tax paid by the buyers would be greater than shown in the figure
A) only if the demand was more elastic. B) only if the demand was more inelastic. C) only if the supply was more elastic. D) if either the demand was more inelastic or the supply more elastic.