An increase in supply will decrease prices most when demand is
A. unit elastic.
B. inelastic (but not perfectly inelastic).
C. elastic.
D. perfectly inelastic.
Answer: D
Economics
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Plutonia uses the Taylor rule to set the short term interest rate at which banks lend to each other
Compute the short term interest rate that should be set in Plutonia if the inflation target is 2%, the long-term target for the interest rate is 3%, the current rate of inflation is 5%, and output is 5% below its trend.
Economics
Good internal control over financial investments requires that the treasurer obtain certificates for all securities and keep them in the company safe.
a. true b. false
Economics