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.
B
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What did the former British Prime Minister Winston Churchill mean when he said,"Democracy is the worst form of government, except for all those other forms that have been tried from time to time"?
What will be an ideal response?
Refer to the graph below. If more people in Europe decide to purchase U.S. cars, what effect will this have on the market for euros?
Assume that U.S. and European governments adopt a system of flexible exchange rates, and the figure below shows the market for euros.
A. Demand will decrease
B. Demand will increase
C. Supply will increase
D. Supply will decrease