If demand for a given good is perfectly elastic, it follows that
a. as price changes, quantity demanded does not change.
b. as price changes, quantity demanded changes by a larger percentage.
c. as price changes only a small percentage, quantity demanded falls to zero.
d. as income changes only a small percentage, quantity demanded changes by a very large percentage.
e. none of the above
Answer: c. as price changes only a small percentage, quantity demanded falls to zero.
You might also like to view...
In the table above, the market is in equilibrium. Then a minimum wage is set at $11 per hour. The number of workers who lose their jobs will be
A) 0. B) 1 million. C) 3 million. D) 5 million.
If nominal gross domestic product is $4,800 and the money supply is $600, the velocity of money is _____
a. 18.3 b. 8 c. 4.57 d. 12
For a monopoly,
a. average revenue exceeds marginal revenue. b. average revenue equals marginal revenue. c. average revenue is less than marginal revenue. d. price equals marginal revenue.
The 12 regional Fed banks do not:
A. Provide loans to banks. B. Hold reserves for banks. C. Accept deposits from individuals. D. Provide currency to banks.