Which of the Following Statements About the Elasticity of Demand

question 271

Multiple Choice

Which of the following statements about the elasticity of demand for a monopolist is TRUE?

• A) Since a monopolist produces a good with no close substitutes, the price elasticity of demand for the good is zero.
• B) A monopolist produces a good with demand that is perfectly inelastic because people can not do without the good.
• C) Since every good has some substitute, even if imperfect, the demand for a good produced by a monopolist will not have zero price elasticity.
• D) Since the demand curve of a monopolist is downward sloping, the demand for the good must be inelastic.

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Definitions:

Defense Mechanism

Psychological strategies used by individuals to cope with reality and maintain self-image.

Own Feelings

A person's personal emotional responses or states.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.

Feelings Of Inadequacy

Emotional states reflecting a lack of confidence or belief in one's own abilities or worth.