If demand for a good is perfectly inelastic, then
A) a price increase would cause a fall in quantity demanded.
B) a price increase would cause no change in quantity demanded.
C) a price increase would cause an increase in quantity demanded.
D) a price increase would cause a fall in total revenue.
Answer: B
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Everything else remaining unchanged, what is likely to happen to the credit demand curve of a software producing firm if:
a. there is an increase in the real interest rate? b. they plan to expand production in near future?
The closer monopolistic competition gets to perfect competition
a. the more vertical the AR curve. b. the more horizontal the AR curve. c. the greater the difference between AR and MR. d. the greater the profit.
Celebrity endorsements are often used by monopolistically competitive firms to boost the reputation of the product that is being endorsed
a. True b. False Indicate whether the statement is true or false
Suppose business decision makers become more optimistic about future economic conditions and desire additional funds to expand their plant capacity. What is the likely effect on the loanable funds market?
a. The demand for loanable funds will increase, and the interest rate will rise. b. The demand for loanable funds will decrease, and the interest rate will fall. c. The supply for loanable funds will increase, and the interest rate will fall. d. The supply for loanable funds will decrease, and the interest rate will rise.