Demand is perfectly inelastic when a. the good in question has perfect substitutes b. shifts in the supply curve results in no change in price c. shifts of the supply curve results in no change in quantity demanded d. shifts of the supply curve results in no change in the total revenue from sales

Q: What is the law of demand? A) As the price of a good increases, its demand decreases B) As the price…

A: Demand in the market represents the willingness of the consumers to purchase the goods and services…

Q: PlayStation 3 and XBOX 360 are substitutes. If the price of PlayStation 3 increases what will happen…

A: Two goods are substitutes when one of them can be consumed in place of the other good.

Q: 1. If the price of tacos increase from $2 to $3 then a. demand will increase b. demand will decrease…

A: 1. If the price of tacos increases from $2 to $3 then Quantity demanded will decrease Therefore, the…

Q: What does the price elasticity of supply measure?    A. how much the price of the good responds to…

A: Supply is the number of goods and services that the supplier is ready and willing to supply at each…

Q: If an increase in the supply of good A increases the demand for good B, then A. A and B are…

A: Two goods are said to be complementary when they are used together. Two goods are said to be…

Q: For the supply of a normal good or service, there is an inverse relationship between price and…

A: 1. False, as for the supply of a normal good or service, there is a positive relationship between…

Q: In the demand curve shown, an increase in price from $1 to $2 will 3.5 3. 2.5 2 1.5 0.5 10 15 20 25…

A: The diagram which is given in the question shows demand curve. Demand curve is the curve which shows…

Q: When the price of a hoola hoop is $10, 200 units are sold on the market.  When the price of a hoola…

A: Given: P1 = $10 Q1= 200 units P2= $8 Q2 = 120 units

Q: Gasoline and tires are complementary goods.  When the price of gasoline increases the ________for…

A: In economics, complementary goods are two goods that are used together. When the price of one good…

Q: In the luxury trips market, if income of people increases 50%, quantity demanded increases from 20…

A: Elasticity is a phrase used to describe how demand and supply can alter as a result of shifting…

Q: Figure 4-6 Price an increase in demand D₁ a decrease in demand Refer to the figure. What would you…

A: Demand is a flow concept which was given by Alfred Marshall. Demand is a concept that refers to…

Q: Listen As we move downward and to the right along a linear downward-sloping demand curve, price…

A: Demand becomes price inelastic downwards

Q: suppose price of good x increases from $20 to $50 . the quantity of good y decreases from 9 to 4.…

A: Cross-price elasticity: - Cross-price elasticity of demand measures the responsiveness of change in…

Q: the percentage change in quantity demanded divided by the percentage change in income B. the total…

A: Cross elasticity of demand measures the quantitative change in demand of one good following change…

Q: The demand for a good will be less price elastic, Select one: a. The larger is the percentage of…

A: Any change in market factors will directly or indirectly influence the buying decision of a consumer…

Q: if the demand curve is perfectly elastic, then an increase in supply will? a. decrease the price but…

A: The demand curve shows an inverse relationship between price and quantity demanded. Demand is a…

Q: 4. Will a perfectly elastic supply curve be vertical, horizontal, or upward-sloping? 5. What price…

A: A measurement of the change in the level of consumption of a product with respect to a change in the…

Q: Cups of coffee and cups of milk tea are substitutes. Assume both have elastic demand. Suppose a…

A: Elastic demand implies a situation where the quantity demanded for a good or service is highly…

Q: If the price of one good decreasing causes the price of another good to increase, then: a. demand is…

A: Substitute good – a good in which can substitute for another good (competitor’sgood). An increase…

Q: An increase in the price of Good A causes all of the following except: a decrease in the quantity…

A: The demand curve shows an inverse relationship between price and quantity demanded. Demand is a…

Q: Demand for the desired quantity of a good that is backed by the ability to buy that good is known…

A: The economic law of demand portrays the negative relationship between the desired units demanded of…

Q: #4 Determining the price elasticity of demand of a product involves all of the following factors,…

A: The price elasticity of demand refers to the responsiveness of demand due to the change in the…

Q: e the quantity they buy from 1,750 pizzas a day to 2,250 pizzas a day. Calculate the price…

A: given decrease in price = 10 % old quantity = 1750 new quantity demanded = 2250 %age change in…

Q: results in a movement downward and to the right along a demand curve. results in a movement upward…

A: A demand curve is a graphical representation of the relationship between the quantity of a good or…

Q: Using the midpoint method, the price elasticity of demand for a good is computed to be approximately…

A: The price elasticity of demand refers to the percentage change in quantity demanded in response to…