If the demand curve is perfectly elastic, the elasticity coefficient is ____ and the curve is ____
a. zero, vertical
b. infinity, horizontal
c. zero, horizontal
d. infinity, vertical
b
Economics
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Economic analysis is used
A) only in economics classrooms. B) only by business people. C) only by policy makers. D) in all decision making.
Economics
Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises. What is happening to the real rate of interest?
A) It is unchanged. B) It is increasing. C) It is decreasing. D) It equals the nominal interest rate.
Economics