Which of the following describes a situation in which demand must be inelastic?
a. The price of vitamins rises by 10 cents, and quantity of vitamins demanded falls by 50.
b. The price of vitamins rises by 10 cents, and total revenue rises.
c. A 20 percent increase in the price of vitamins leads to a 20 percent decrease in the quantity of vitamins demanded.
d. Total revenue does not change when the price of vitamins rises.
e. Total revenue decreases when the price of vitamins rises.
B
You might also like to view...
Which point or points on the above figure illustrate a short-run equilibrium?
A) Point A B) Point C C) Point B D) Points A and C
Refer to the figure above. Which of the following statements is true when the credit demand curve is CD1 and the credit supply curve is CS1?
A) At all rates of interest above 3% there will be a tendency for real interest rates to fall. B) At all rates of interest above 4% there will be a tendency for real interest rates to fall. C) At all rates of interest above 2% there will be a tendency for real interest rates to fall. D) At all rates of interest above 1% there will be a tendency for real interest rates to fall.