A perfectly inelastic demand curve exhibits
A) zero responsiveness to changes in price.
B) zero quantity demanded when there is a slight change in price.
C) a change in quantity demanded that is proportional to the change in price.
D) a change in quantity demanded that is always twenty percent of the change in price.
Answer: A
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The equilibrium level of aggregate planned expenditure is found where
A) there is no saving and no dissaving. B) net exports is zero. C) aggregate planned expenditure equals real GDP. D) autonomous expenditure equals equilibrium expenditure. E) the price level is rising at a constant rate.
The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. What is the marginal social benefit from the 100th pound of chocolate each day?
A) $1.50 per pound B) $1.00 per pound C) $0.50 per pound D) None of the above answers is correct.