Large industries that employ most of the available resources tend to have constant costs in the long run.

If the quantity demanded changes by an infinitely large amount for a given change in price, then demand is

A) perfectly inelastic. B) perfectly elastic. C) elastic. D) inelastic.

An import quota or tariff on French wine that raises the prices for wine will probably a. hurt domestic wineries, which will lose business as a result of the higher prices

b. hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition. c. hurt both domestic wine drinkers and domestic wineries but this will be more than offset by a reduction in driving fatalities. d. hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.