If the price of a good decreases by 5% and the quantity demanded remains unchanged, then at that price, the good is
A. elastic.
B. perfectly elastic.
C. inelastic.
D. perfectly inelastic.
Answer: D
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The table shows the demand and supply schedules for jeans
A) At $60 a pair, there is a shortage of jeans and the price will fall. B) At $60 a pair, there is a surplus of jeans and the price will rise. C) At $40 a pair, there is a shortage of jeans and the price will rise. D) At $40 a pair, there is a shortage of jeans and the price will fall.
Which of the following is not an income transfer?
A.) Unemployment benefits B.) Social Security payments C.) Food stamps D.) Welfare
Which of the following is the most likely side effect of an increase in the relative size of the underground economy with the passage of time?
a. The growth rate of real GDP will tend to understate the growth rate of total output. b. The growth rate of real GDP will tend to overstate the growth rate of total output. c. The GDP deflator will tend to overstate any increase in inflation. d. The GDP deflator will tend to understate any increase in inflation.
The statement "By the time our grandchildren are born, scarcity will not be a problem" is
A. possible only if technology advances at a great pace. B. true, because we will learn to limit our wants in the future. C. true, because by that time everyone's basic needs will be met. D. false, because people always want more than there is available.