Demand is inelastic if
A. a given percentage change in price will result in a greater than proportionate percentage change in the quantity demanded.
B. a given percentage change in price will result in a less than proportionate percentage change in the quantity demanded.
C. small price increases will lead to zero quantity demanded.
D. demand exhibits zero responsiveness to price changes.
Answer: B
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A government policy that would raise the rate of productivity growth is
A) shifting infrastructure expenditures to the private sector. B) taxing expenditures on research and development. C) reducing the government budget surplus. D) improving human capital development.
Stock markets transactions involve
A. exclusively in newly issued stocks. B. purchases and sales of previously issued stocks. C. in both newly issued and previously issued stocks, but they do not deal in bonds. D. in large amounts of both newly issued and previously issued stocks and bonds.
Suppose a tax on sellers has been imposed in the graph shown. Once the tax is in place, the buyers purchase ____ units and pay ____ for each one.
A. 15; $16
B. 15; $6
C. 31; $9
D. 31; $19
Utility is determined by an individual's
a. income b. price c. relative price d. profit e. tastes and preferences