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.
D
You might also like to view...
If the wage rate rises, labor's share in the total costs of a production process:
a. will increase. b. will decrease. c. may increase or decrease depending on the elasticity of demand for the product. d. may increase or decrease depending on the ease of substitution of other inputs for labor.
A market demand curve is
a. the sum of the demand curves of individuals in a market b. the sum of individuals who make demands c. horizontal at the market price d. vertical at the market price e. upward sloping
Which of the following explains why monopoly is uncommon in the real world?
a. firms usually face downward-sloping demand curves. b. supply curves slope upward. c. price is usually set equal to marginal cost by firms. d. there are reasonable substitutes for most goods.
History suggests that economic competition is the most consistent force for economic growth and progress.
Answer the following statement true (T) or false (F)