When demand is inelastic
A. the percentage change in quantity demanded is less than the percentage change in price.
B. the buyer is insensitive to price changes.
C. the elasticity coefficient is greater than zero, but less than one.
D. all of these statement statements are true.
D. all of these statement statements are true.
You might also like to view...
The above figure gives your budget line between CDs and magazines. If the price of a magazine falls, then the budget line
A) shifts outward and the slope does not change. B) rotates inward with no change in the horizontal intercept. C) rotates inward with no change in the vertical intercept. D) rotates outward with no change in the vertical axis.
Suppose there is a 5 percent increase in nominal demand in every industry in an economy. Factors that keep the price level from also rising by 5 percent are called
A) real rigidities. B) nominal rigidities. C) macroeconomic externalities. D) indexations.
If price is equal to short-run average variable cost, this price is known as
a. the break-even price. b. the profit-maximizing price. c. the shutdown price. d. the revenue-maximizing price.
The elasticity of demand for fish is estimated to be 3. If this estimate is accurate, then a 3% rise in price will
A. increase quantity demanded by 1%. B. increase quantity demanded by 9%. C. decrease quantity demanded by 9% D. decrease quantity demanded by 3%.