Which of the following statements applies to a purely competitive producer?
A. It will not advertise its product.
B. In long-run equilibrium it will earn an economic profit.
C. Its product will have a brand name.
D. Its product is slightly different from those of its competitors.
Answer: A
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The less sensitive quantity demanded is to a change in price, the
A) smaller a change in price must be to induce a certain change in quantity demanded. B) greater the absolute price elasticity of demand. C) smaller the absolute price elasticity of demand. D) closer the absolute price elasticity of demand is to one.
When the money market is drawn with the value of money on the vertical axis, the money demand curve slopes
a. upward, because at higher prices people want to hold more money. b. downward, because at higher prices people want to hold more money. c. downward, because at higher price people want to hold less money. d. upward, because at higher prices people want to hold less money.