Which of the Following Is True

question 48

Multiple Choice

Which of the following is true?

• A)on a linear demand curve, the higher the price the less elastic is demand
• B)on a linear demand curve, elasticity is constant
• C)at the same price demand is less elastic on the steeper demand curve
• D)all are true

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Definitions:

Spending Multiplier

A concept in economics that represents how changes in autonomous spending lead to changes in total economic output.

Budget Surplus

A situation where a government's revenues exceed its expenditures within a specific period.

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods consumed, often resulting in market stability.

Short-Run Aggregate Demand

The total amount of goods and services that will be purchased at all possible price levels in an economy in a short period.