The demand for the product of a competitive price-taker firm is: ...

[imanialler]

The demand for the product of a competitive price-taker firm is:
 a. perfectly inelastic.
  b. perfectly elastic.
  c. greater than zero but less than one.
  d. dependent on the availability of substitutes for the firm's product.

Question 2

Sally recently got a 15 percent raise. She now purchases 7.5 percent more steak dinners. Sally's income elasticity for steak dinners is:
 a. 0.5.
  b. 0.75.
  c. 1.5.
  d. 2.0.

[xiaomengxian]

Answer to Question 1

b

Answer to Question 2

a