If demand is perfectly elastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%.
B) then a 1% increase in price leads to a fall in quantity of less than 1%.
C) then a 1% increase in price causes quantity demanded to fall to zero.
D) then a 1% increase in price has no effect on quantity demanded.
C
You might also like to view...
One Sunday afternoon, your mother tells you and your brother that you can quickly make some money by helping her wash dishes. Both of you decide to help her. Once both of you are done with the work, your mother gives you a $20 bill
She also says that you can divide the money between yourself and your brother in any proportion you want, but if your brother does not accept the amount he is being given, she will take all of the money back. a) How much money should you offer your brother if he prefers more money to less? b) How much money should you offer to your brother if you know that your brother prefers fairness to money?
If the dollar used to buy 100 yen and now buys 360 yen, there has been
A) appreciation of the dollar. B) depreciation of the dollar. C) appreciation of the yen. D) an increase in special drawing rights.