If demand is perfectly inelastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%.
B) then a 1% increase in price leads to a fall in quantity of less than 1%.
C) then a 1% increase in prices then quantity demanded falls to zero.
D) then a 1% increase in price has no effect on quantity demanded.
D
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Which of the following describes a situation in which demand must be inelastic?
a. The price of pens rises by 10 cents, and quantity of pens demanded falls by 50. b. The price of pens rises by 10 cents, and total revenue rises. c. A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded. d. Total revenue does not change when the price of pens rises. e. Total revenue decreases when the price of pens rises.
The objective of Operation Twist was to:
A. stimulate aggregate demand by lowering long-term interest rates. B. stimulate aggregate demand by lowering short-term interest rates. C. reduce inflationary pressure by raising long-term interest rates. D. reduce inflationary pressure by raising short-term interest rates.