If demand is inelastic and the price of a product decreases by 100 percent, then
A) the change in quantity demanded is less than 100 percent.
B) the change in quantity demanded is equal to 100 percent.
C) the change in quantity demanded is greater than 100 percent.
D) the decrease in quantity demanded is greater than 0 percent.
Answer: A
You might also like to view...
During last year the price of regular unleaded gasoline in Oakland, California increased 11.0 percent. If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by
A) 1.43 percent. B) 8.46 percent. C) 0.16 percent. D) 4.31 percent. E) 6.46 percent.
If an individual buys only two goods and these must be used in a fixed relationship with one another (e.g., coffee and cream for a coffee drinker who never varies the amount of cream used in each cup), then
a. there is no substitution effect from a change in the price of coffee. b. there is no income effect from a change in the price of coffee. c. Giffen's Paradox must occur if both coffee and cream are inferior goods. d. an increase in income will not affect cream purchases.