A few sellers may behave as if they operate in a perfectly competitive market if the market demand is:
A: highly inelastic.
B: very elastic.
C: unitary elastic.
D: composed of many small buyers.
A: highly inelastic.
B: very elastic.
C: unitary elastic.
D: composed of many small buyers.
举一反三
- As a result of running high temperature this summer in the south of China, the corn crop declined sharply. If corn growers experienced an increase in sales revenue, the demand for corn must be ( ) A: price elastic. B: price inelastic. C: unitary elastic. D: perfectly inelastic.
- If there are very few, if any, good substitutes for good A, then (). A: supply of good A would tend to be price elastic. B: demand for good A would tend to be price inelastic. C: demand for good A would tend to be price elastic. D: demand for good A would tend to be income elastic.
- A vertical supply curve may be described as: A: relatively price elastic. B: perfectly price inelastic. C: relatively price inelastic. D: perfectly price elastic. E: none of the above are accurate descriptions.
- If a tax is imposed on a market with inelastic supply and elastic demand, then A: buyers will bear most of the burden of the tax. B: sellers will bear most of the burden of the tax. C: the burden of the tax will be shared equally between buyers and sellers. D: it is impossible to determine how the burden of the tax will be shared.
- The price of chicken increases as the result of higher pork prices. This indicates that A: chicken and pork are substitutes. B: chicken and pork are complements C: the market demand for pork is inelastic. D: the market demand for chicken is elastic.