59. An increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events,
a. the demand for tires decreases and the supply of tires increases.
b. the demand for tires is unaffected and the supply of tires decreases.
c. the demand for tires is unaffected and the supply of tires increases.
d. None of the above is necessarily correct.
19. Price elasticity of demand along a linear, downward-sloping demand curve increases as price falls.(true or false)
84. If the price elasticity of demand is 1.5, regardless of which two points on the demand curve are used to compute the elasticity, then
a. demand is perfectly inelastic, and the demand curve is vertical.
b. demand is elastic, and the demand curve is a straight, downward-sloping line.
c. demand is perfectly elastic, and the demand curve is horizontal.
d. demand is elastic, and the demand curve is something other than a straight, downward-sloping line.
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