The price elasticity of supply for the Hope Diamond is zero because there is only one. Therefore, the supply curve for the Hope Diamond is

A. perfectly inelastic.
B. unit elastic.
C. elastic.
D. perfectly elastic.

Answer: A

Economics

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The fact that a firm is using a capital-intensive method of production means that input substitution is not possible

Indicate whether the statement is true or false

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A decrease in total revenue will result if

A. demand is inelastic and price increases. B. demand is inelastic and price decreases. C. demand is elastic and price decreases. D. demand is unitary elastic and price decreases.

Economics