If the demand for product X is inelastic, a 4 percent increase in the price of X will:
A. decrease the quantity of X demanded by more than 4 percent.
B. decrease the quantity of X demanded by less than 4 percent.
C. increase the quantity of X demanded by more than 4 percent.
D. increase the quantity of X demanded by less than 4 percent.
Answer: B
Economics
You might also like to view...
An objective analysis of "what is" in the economy is referred to as
A) positive economics. B) normative economics. C) command economics. D) implicit economics.
Economics
If MC > MR,
a. output should be reduced. b. marginal profit is positive. c. there are losses. d. output should be increased.
Economics