If demand is perfectly elastic, the absolute value of the price elasticity coefficient is
A) one.
B) infinity.
C) zero.
D) equal to the absolute value of the slope of the demand curve.
B
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Which one of the following statements is TRUE?
A) If the money price of a good increases, its relative price necessarily increases. B) If the money price of a good increases, its relative price necessarily decreases. C) The relative price of a good refers to the opportunity cost of purchasing it. D) Rational consumers always ignore the monetary price of a good when deciding whether to buy it.
Macroeconomists are concerned with each of the following issues EXCEPT:
A. Why does inflation vary across countries? B. Why does inflation vary over time? C. Why do the prices of computers increase more slowly than the price of gasoline? D. What are the costs of inflation?