If the demand for a good is perfectly inelastic, what will happen to the quantity demanded if there is a tiny increase in price?
a. quantity demanded will increase proportionately
b. quantity demanded will fall to zero
c. quantity demanded will decrease proportionately
d. quantity demanded will remain the same
d
Economics
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Suppose people buy more of good 1 when the price of good 2 falls. These goods are
A) complements. B) substitutes. C) normal. D) inferior.
Economics
Assume the current price of good X is too high, i.e., it is above the equilibrium price. Describe the changes that would occur in a market as a result, i.e., explain how the market would adjust to equilibrium
What will be an ideal response?
Economics