The slope of the perfectly inelastic demand curve is ________, the slope of the perfectly elastic demand curve is ________

What is the key incentive that motivates a manufacturer to sell its products?

a. making profits on sales b. pleasing the consumer c. putting others out of business d. popularity of the product

Suppose the US imposes tariffs on China, which retaliates with tariffs of its own. The ensuing trade war causes both countries to begin producing goods at higher costs than before because of the loss of comparative advantage. The result is a direct effect on the production function, which causes the ________ to shift ________.

A. LM curve; left B. FE line; left C. IS curve; left D. IS curve; right