Question: If demand for a given good is perfectly elastic, it follows that as price changes, quantity demanded does not change. as price changes, quantity demanded

If demand for a given good is perfectly elastic, it follows that

as price changes, quantity demanded does not change.

as price changes, quantity demanded changes by a larger percentage.

as price changes by the tiniest percentage we can imagine, quantity demanded falls to zero.

as income changes only a small percentage, quantity demanded changes by a very large percentage.

none of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

According to the January theory, if the stock market is up at the end of January, it will be up for the year. If it is down at the end of January, it will be down for the year. Within the last 34...

Q:

A.. 1) As new firms enter a monopolistically competitive industry, it can be expected that: a.Profits of existing firms will fall. b.Market price will rise. c.Market demand will rise. d.The profits...

Q:

Perfectly elastic demand occurs when: Answer area The quantity demanded remains constant regardless of price changes The quantity demanded is infinitely responsive to any price change The percentage...

Q:

Can someone help me translate this into a Excell sheet INSTRUCTIONS STEP 1 RETRIEVING A PREVIOUSLY SAVED FILE Instead of building your worksheet from scratch, you will be adding information to a...

Q:

Please answer these questions Question 1 The amount of satisfaction obtained from consumption of an additional unit of a good or service is Group of answer choices Never negative Total utility A...

Q:

Multiple Choice. _____ 1. The law of demand states that a. as price increases, quantity demanded increases. b. as price decreases, demand increases. c. there is a direct (positive) relationship...

Q:

1 Look at Question 1 on problem set #4. The elasticity of demand for the newspaper in this price range is equal to __________. (sign and numeric answer) 1.5 points QUESTION 2 Look at question 1 on...

Q:

Multiple choice questions: 1. The way we measure the sensitivity of quantity demanded to changes in price by elasticity differs from using the slope because elasticity calculates the ratio of the a....

Q:

Question 9 Not yet answered Marked out of 1.000 \\V Flag question Question 10 Not yet answered Marked out of 1.000 \\V Flag question Question 11 Not yet answered Marked out of 1.000 \\V Flag question...

Q:

Question 1: (16 marks) Provide a clear and specific definition, an equation, and an example for each of the following, except as noted: -The natural rate of unemployment (definition only) -If Canada...

Q:

1 Assignment 2 Part I Multiple - choice questions 1 . The equilibrium condition for a consumer who is spending all of his or her budget on two commodities, A and B , is given by: a . MUA = MUB b ....

Q:

In 2011, Forbes surveyed 16,000 alumni (class of 2006) at more than 100 2-year business schools. Of the 30% who responded, Forbes computed the alumnis returns on investment from attending the...

Q:

Using EES (or other) software, investigate the effect of number of reheat stages on the performance of an ideal Rankine cycle. The maximum and minimum pressures in the cycle are 15 MPa and 10 kPa,...

Q:

Most jobs for genetic counselors are found in physician offices in urban areas and pharmaceutical companies. True False

Q:

Methane, CHa is a tetrahedral molecule and does not exhibit a pemanent dipole moment (i.e. it has a dipole moment of 0). Nonetheless, in microwave spectroscopy methane does exhibit a weak, but...

Q:

A coal has 10% moisture, 39% volatile matter and 41% ash. Calculate % volatile matter and % fixed carbon on (dry, mineral-matter free) dmmf basis and determine the ASTM Group to which the coal...

Q:

Determine whether the given is a logarithmic function, a logarithmic equation, a logarithmic inequality, or neither a) y = log x b) logs = logs x c) log, x = log2 (x 4) d) log x (x + 2)

Q:

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

Q:

The role of life: It consists of your own service to yourself.

Q:

Competence: What knowledge, skills and attitude do I have towards what I am going to do?

Q:

1. Imagine a real situation in your workplace or home situation, where you have given another person feedback on something he has done. a. What was your intention? b. How was the feedback perceived?...