Author Question: If demand is perfectly inelastic A) then a 1 increase in price leads to a fall in quantity of ... (Read 46 times)

mp14

  • Hero Member
  • *****
  • Posts: 534
If demand is perfectly inelastic
 
  A) then a 1 increase in price leads to a fall in quantity of greater than 1.
  B) then a 1 increase in price leads to a fall in quantity of less than 1.
  C) then a 1 increase in prices then quantity demanded falls to zero.
  D) then a 1 increase in price has no effect on quantity demanded.

Question 2

If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
 
  A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market.
  B) appeal to firms' environmental conscience to pollute less.
  C) subsidize production.
  D) rely on the Coase Theorem.



duke02

  • Sr. Member
  • ****
  • Posts: 312
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

For a complete list of videos, visit our video library