A horizontal demand curve shows that demand for a good is _____
a. perfectly inelastic
b. moderately inelastic
c. unit-elastic
d. moderately elastic
e. perfectly elastic
e
Economics
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When demand is perfectly inelastic, the price elasticity of demand
a. is zero, and the demand curve is vertical. b. is zero, and the demand curve is horizontal. c. approaches infinity, and the demand curve is vertical. d. approaches infinity, and the demand curve is horizontal.
Economics
An industry has a single firm, and is found to have violated antitrust laws. The government breaks its up into two firms that will share the market equally. The Herfindahl index for this industry would change from:
A. 100 to 50 B. 10000 to 2500 C. 100000 to 50000 D. 10000 to 5000
Economics