For a vertical demand curve,

a. the slope is undefined, and the price elasticity of demand is equal to 0.
b. the slope is equal to 0, and the price elasticity of demand is undefined.
c. both the slope and price elasticity of demand are undefined.
d. both the slope and price elasticity of demand are equal to 0.

a

Economics

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Refer to the above figure. As the real national income expands from Y2 to Y3,

A) tax revenues fall. B) a budget deficit occurs. C) government transfers rise. D) a budget surplus occurs.

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The income effect for an inferior good

A) is negative. B) is zero. C) is positive. D) could be negative, zero, or positive.

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