If,as Price Falls from $10 to $9,quantity Demanded Rises from 7

question 79

Multiple Choice

If,as price falls from $10 to $9,quantity demanded rises from 7 to 12 units,demand is

• A) perfectly elastic.
• B) elastic.
• C) inelastic.
• D) perfectly inelastic.
• E) unit-elastic.

---

Definitions:

Price

The amount of money expected, required, or given in payment for something.

Money Income

Income received in the form of money rather than in-kind benefits or goods, crucial for determining purchasing power and standard of living.

Marginal Utility

The increase in satisfaction or advantage a buyer experiences from acquiring one more unit of a good or service.

Utility Maximization

A theory in economics asserting that individuals aim to achieve the highest level of satisfaction or utility through their choices, given their resources.