Along a linear (straight-line) downward-sloping demand curve, demand is unit elastic at
A) the highest price.
B) the lowest price.
C) the midpoint.
D) all points on the linear demand curve.
E) None of the above because linear demand curves are never unit elastic.
C
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Which of the following was an important reason why the United States did NOT sign the Kyoto Protocol?
a. It believed that exemptions for some of its major developing country trading partners (such as China and India) were unfair. b. It believed that Europe's targets were set ridiculously low. c. It believed that pollution does not cause global warming. d. It believed that targets for some of its major developing country trading partners (such as China and India) were too low.
The process of arbitrage:
A. raises or lowers the average expected rate of return of a financial asset with a given level of risk. B. vertically shifts the Security Market Line. C. moves a financial asset along the Security Market Line. D. pushes all financial assets to the same average expected rate of return and risk level.