Which of the following is compatible with a firm in a purely competitive market?
Demand is inelastic
Demand is infinitely inelastic
Marginal Cost is falling
Price is greater than Marginal Cost
Correct answer is B
No explanation has been provided for this answer.
An increase in supply will lower price unless
Supply is perfectly inelastic
Demand is perfectly inelastic
It is followed by an increase in demand
Demand is highly inelastic
Correct answer is C
No explanation has been provided for this answer.
If a good is an inferior good, then
It is also necessarily a Giffen good
The quality of the goods demanded varies inversely with its price
Its income elasticity of demand is negative
The poor buy the good only out of habit
Correct answer is C
No explanation has been provided for this answer.
For normal goods the income elasticity of demand is
Positive
Negative
Zero
Infinite
Correct answer is A
No explanation has been provided for this answer.
10.20
3.57
1.25
0.80
Correct answer is C
No explanation has been provided for this answer.