If the Demand for a Good Is Perfectly Inelastic, Then:
If the demand for a good is perfectly inelastic, then:
A)the value of price elasticity of demand of the good is equal to 1.
B)the value of price elasticity of demand of the good is equal to -1.
C)the demand curve of the good is nonexistent.
D)consumers are very responsive to a change in the price of the good.
E)quantity demanded does not change when price of the good changes.
If a price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units, one can conclude that demand for the product is _____.
Assume that the demand curve for a certain good is a vertical line. This vertical demand curve illustrates the idea that:
A)consumers are unwilling to pay more than a certain price for the good.
B)the good is a complement to another good.
C)consumers are unwilling to pay less than a certain price for the good.
D)there are many substitutes for this good.
E)people will not change the quantity demanded of the good when its price is changed.
If the demand for corn is elastic, then:
A)there are not many substitutes for the consumption of corn.
B)the price elasticity of demand for corn is less than -1.
C)a decrease in price will reduce total revenue for corn producers.
D)an increase in price will increase total revenue for corn producers.
E)consumers will continue buying the same quantity even if price increases.