When economists say the demand for a good is highly inelastic, they mean that
a. even if the price rose substantially, suppliers would be unwilling to offer much more of the good.
b. the facilities utilized by producers of the good are inflexible; producers cannot easily expand their facilities, even in the long run.
c. consumers will respond to a change in the price of the good by purchasing substantially more of it.
d. a large (percentage) change in the price of a good will result in only a small (percentage) change in the quantity demanded.
D
You might also like to view...
When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect
A) substitute; complement B) substitution; income C) normal; inferior D) supply; demand
Which of the following is NOT true of a fixed payment loan?
A) The borrower is required to make regular periodic payments to the lender. B) The payments made by the borrower include both interest and principal. C) The borrower is left with a substantial unpaid principal at the maturity of the loan. D) A home mortgage is an example of fixed payment loan.