Suppose the supply curve for a good is vertical. We know that supply is
A. . price elastic.
B. . perfectly price inelastic.
C. . unit price elastic.
D. . perfectly price elastic.
查看答案
If the percentage change in the quantity supplied of a good is less than the percentage change in price, then supply of the good is
A. . elastic.
B. . inelastic.
C. . normal.
D. . inferior.
Suppose the cross-price elasticity of demand is a negative number. We know that
A. . the two goods are complements.
B. . the two goods are substitutes.
C. . the two goods are inferior goods.
D. . the two goods are normal goods.
The income elasticity of demand for good X is estimated to be -0.5. This suggests that good X is
A. . a complementary good.
B. . a substitute good.
C. . a normal good.
D. . an inferior good.
The local movie theater lowers admission prices in an attempt to increase its revenues. The managers of the theater must believe demand to be
A. . unit price elastic.
B. . perfectly price inelastic.
C. . price elastic.
D. . price inelastic.