If, for a given percentage increase in price, quantity demanded falls by a proportionately smaller percentage, then demand is

As prices in Zimbabwe began to rise:

A. Mugabe was able to pay bribes with the new money and then started the process of reducing inflation. B. people immediately lost faith in the Zimbabwean dollar, causing its value to plummet to zero. C. people updated their inflation expectations so that future increases in the money supply were impossible. D. the government had to print even more money to continue to buy just as many goods as it did before.

Under what circumstances will the economic rent earned by a factor of production always be zero?

A) Infinitely inelastic supply curve B) Infinitely elastic supply curve C) Somewhat inelastic supply curve D) Elastic demand curve