If the price changes for a good for which the demand is perfectly inelastic, the response will be infinitely large.
Answer the following statement true (T) or false (F)
False
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Whenever there is inflation, increase in nominal gross domestic product (GDP) overstates the growth rate of the economy
a. True b. False Indicate whether the statement is true or false
Governments can use price elasticity of demand to estimate how changes in excise tax rates will affect
a. income b. prices c. tax revenues d. government spending e. profits
During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. You got ________ utility from eating the fourth pie than from eating the second pie.
A. more B. the same amount of C. less variable D. less
If the number of automobile manufacturers decreases:
A. the demand for automobiles increases. B. the demand for automobiles decreases. C. the supply of automobiles increases. D. the supply of automobiles decreases.