Which of the following statements is correct for the price elasticity of demand along a linear, downward-sloping demand curve?
A) The price elasticity of demand is constant because the slope is constant.
B) At low prices, demand is elastic but at high prices demand is inelastic.
C) At high prices, demand is elastic but at low prices demand is inelastic.
D) The price elasticity of demand is not defined for a linear demand curve because the slope is constant.
E) None of the above answers is correct.
C
You might also like to view...
Data on the relationship between the U.S. multilateral real exchange rate and the U.S. trade balance shows:
a. a surprising result that the decrease in the trade balance is correlated with an increase (depreciation) of the U.S. dollar multilateral real exchange rate. b. a predictable result that the increase in the trade balance is correlated with an increase (depreciation) of the U.S. dollar multilateral real exchange rate. c. a correlation that is so weak it cannot be used to support the theory that the trade balance is related to the real effective exchange rate of the U.S. dollar. d. a surprising result that the increase in the U.S. trade balance occurs with a decrease (appreciation) in the real effective exchange rate of the dollar.
A recent example of the administrative lag came in the form of it taking
A. several months in 2003 for Congress to agree on a specific tax cut package, even after they had agreed on having one. B. very little time for the effects of the 2003 rebate checks to have an effect on the economy. C. only a month or two from the passage of the 2003 tax cut to the issuance to rebate checks. D. until Summer 2003 to recognize that the recession of 2001 ended in December of 2001.