Which of the following best describes a good with perfectly elastic demand?
A) For a given price change, the percentage change in quantity demanded will be less than the percentage change in its price.
B) The demand curve for the good initially slopes upward, reaches its maximum, and then slopes downward.
C) Even the smallest increase in the price of the good will cause consumers to stop consuming it completely.
D) The quantity demanded of the good is completely unaffected by a price change.
C
You might also like to view...
You're the president of the United States and your economic advisor tells you that the economy is in a state of high inflation, high unemployment, and low growth. You know then that your advisor is talking about
a. stagnation b. deflation c. depression d. stagflation e. prosperity
When some people are better informed than others and the imbalance affects the choices they make, economists say there is