The advantage of an isoelastic demand curve is that:
A. both price and income elasticities are constant along the curve.
B. income elasticity is constant and price elasticity changes along the curve.
C. price elasticity is constant and income elasticity changes along the curve.
D. both price and income elasticity change along the curve.
A. both price and income elasticities are constant along the curve.
You might also like to view...
If society wants aggregate demand to increase without changes in the price level, then there must be
A) an increase in autonomous spending combined with an increase in the marginal propensity to save. B) a gap between full employment and the current level of real GDP and an increase in autonomous spending. C) an increase in autonomous saving so that autonomous investment spending can increase. D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.
An increase in nominal GDP implies that the country is producing a greater quantity of goods and services
Indicate whether the statement is true or false