If the price elasticity of demand for a good is less than one in absolute value, economists would characterize consumers of this good
A) as not very sensitive to price.
B) as not very sensitive to the quantity they demand.
C) as very sensitive to price.
D) as elastic.
A
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Which of the following will cause net exports to rise?
a. A depreciation of the domestic currency b. A fall in foreign income c. Higher foreign tariffs on domestic goods d. Inflation in domestic economy e. A depreciation of the foreign currency
Suppose the baseball card industry is monopolistic. We know then that for the monopolist,
a. price elasticity of demand everywhere along its demand curve is infinite b. price elasticity of demand everywhere along the demand curve is zero c. as price increases, marginal revenue decreases d. as price decreases, marginal revenue decreases e. price equals marginal revenue everywhere along its demand curve