Suppose there is no change in total revenue when the price changes. The demand curve for this good is:
A. perfectly elastic.
B. perfectly inelastic.
C. elastic.
D. unitary elastic.
Answer: D
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Freeways in large cities tend to be congested during rush hours to the point where offer little or no advantage over non-freeway routes because
A) drivers generally ignore marginal benefits and costs. B) drivers usually ignore marginal benefits and costs during rush hours. C) no monetary fee is charged for the use of freeways during rush hours. D) not enough freeways have been constructed due to special interests' control of the government. E) people need to get to work and the demand for freeway travel is consequently inelastic during rush hours.
In the Cournot model of oligopoly, firms produce
a. the competitive quantity. b. the monopoly quantity. c. more than the monopoly quantity, but less than the competitive quantity. d. less than the monopoly quantity.