Which of the following is the basic equation underlying aggregate expenditures?

The price elasticity of demand for a vertical demand curve is:

a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic. e. inelastic.

The difficulty in analyzing oligopolistic behavior arises from the

a. degree of government regulation of the market structure. b. interdependent nature of oligopolistic decisions. c. large number of firms in the industry. d. market power of consumers.