Perfectly elastic demand curves are vertical
a. True
b. False
Indicate whether the statement is true or false
False
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If a profit-maximizing monopolist is currently charging a price on the inelastic portion of its demand curve, it should ______.
a. raise price and decrease output b. lower price and increase output c. reduce both output and price d. hold output constant and raise price e. do none of these
Which of the following will happen if the supply of loans increases?
A. The interest rate will rise, and the quantity of money borrowed will decline. B. The interest rate will fall, and the quantity of money borrowed will increase. C. The interest rate will fall, and the quantity of money borrowed will decline. D. The interest rate will rise, and the quantity of money borrowed will increase.