If the quantity demanded of a product is the same for each possible price, demand is
A) unit-elastic.
B) elastic.
C) perfectly elastic.
D) perfectly inelastic.
Answer: D
You might also like to view...
Which of the following is a difference between a bond and a stock? a. The owner of a bond can sell it many times, while a stock remains with its first owner
b. Typically, governments and corporations borrow through a bond market, while a stock market is the most common source of funds for households. c. The owner of a bond earns interest on the money that is paid to buy it, while the owner of a stock owns an equity in the company that issues the stock. d. The owner of a bond owns an equity in the company that issues the bond, while the owner of a stock earns interest on the money that is paid to buy it.
Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Government should either raise its _____________ or cut ___________________. I believe the government spending multiplier is ____________ than the tax multiplier, so I favor _____________________
A) spending; taxes; larger; cutting taxes B) taxes; spending; larger; raising; spending C) spending; taxes; larger; raising; spending D) b or c E) a or c