Demand Is Inelastic If

question 139

Multiple Choice

Demand is inelastic if

• A)a small change in price results in a large change in quantity demanded.
• B)the quantity demanded is very responsive to a change in price.
• C)the price elasticity of demand is 0.2.
• D)the price does not change when supply increases.
• E)a 10 percent change in price results in a 1 percent change in the quantity supplied.

---

Definitions:

Command-And-Control Policies

Governmental regulations that directly mandate specific practices or limit activities in order to achieve policy outcomes, such as environmental standards.

Market-Based Policies

Economic strategies that utilize market principles and forces to address and solve problems, often with the goal of improving efficiency and outcomes.

Environmental Protection Agency

A U.S. federal agency established to coordinate and enforce national pollution control laws and regulations to protect human health and the environment.

Pollution Permits

Allowances given to companies that permit them to emit a certain amount of pollutants; can be bought, sold, or traded.