Demand is price inelastic if a relatively ________ price increase leads to a relatively ________ in the quantity demanded
A) large; small increase
B) small; large decrease
C) large; small decrease
D) small; large increase
C
You might also like to view...
A Nash equilibrium is defined as
A) earning zero economic profit in the long run. B) forming a cartel with strong penalties for cheaters. C) relying on other game players to realize the benefit of cooperation. D) each player taking the best possible action given the action of the other player. E) each player taking the action that is best for all the players.
The short-run aggregate supply curve (SRAS) is based on the theory that wages are flexible
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, it is earning a profit of
A. $0. B. $80. C. $120. D. $320.
The IS curve will shift down and to the left when
A. desired saving declines. B. consumption increases. C. the expected future marginal product of capital declines. D. government purchases increase.