If demand is unit-elastic, then a $5 decrease in price will lead to an increase in quantity demanded by 5 units
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Non-activists
A) distrust the ability of the political process to formulate sensible economic policy. B) argue for a constant-growth-rate rule for the money supply. C) argue that more unemployment now may prevent a lot more unemployment in the future. D) All of the above.
When a firm can achieve economies of scale by expanding, its long-run ATC curve:
A. slopes downward. B. slopes upward. C. is flat. D. Any of these is possible.
In a natural monopoly, and in platform monopolies that have natural monopoly elements, the average cost:
A. increases with additional production. B. remains constant with additional production. C. vacillates up and down with additional production. D. decreases with additional production.
If an increase in the incomes of people who live in the Los Angeles area leads to an increase in the demand for season tickets for games played by the Los Angeles Lakers professional basketball team, then these season tickets are
A. an inferior good. B. an income complement. C. a normal good. D. an income substitute.