Figure 7-2
depicts a demand curve with a price elasticity that is
a.
perfectly elastic, implying that as much as can be supplied will be purchased at the market price.
b.
relatively inelastic, implying that a percent increase in price results in a smaller percent reduction in sales.
c.
unitary, implying that a percent change in price leads to an equal percent change in quantity demanded.
d.
perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good.
d
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What event started the Asian financial crisis in 1997?
A) Indonesia's inability to pay its debts B) devaluation of Indonesia's currency C) Thailand's inability to pay its debts D) devaluation of Thailand's currency E) devaluation of Malaysia's currency
Orchards provide services to beekeepers because the bees use the pollen to make honey. This is an example of
A) a positive externality, and too many orchards exist in society. B) a positive externality, and too few orchards exist in society. C) a negative externality, and too many orchards exist in society. D) a negative externality, and too few orchards exist in society.