If an increase in the supply of a product results in a decrease in the price, but no change in the actual quantity of the product exchanged, then: A) the price elasticity of supply is zero. B) the price elasticity of supply is infinite. C) the price elasticity of demand is unitary. D) the price elasticity of demand is zero.

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.