If Demand Is Price Inelastic,then

question 38

Multiple Choice

If demand is price inelastic,then

• A)buyers do not respond much to a change in price.
• B)buyers respond substantially to a change in price,but the response is very slow.
• C)buyers do not alter their quantities demanded much in response to advertising,fads,or general changes in tastes.
• D)the demand curve is very flat.

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Definitions:

Recession

An interval of economic deceleration, involving a fall in business and industrial activities, often recognized by a drop in GDP across two sequential quarters.

Sharp Recession

A severe and rapid downturn in economic activity.

Unemployment Rate

The fraction of the total employment market that remains without work but is eagerly searching for jobs and is willing to be employed.

Severe Recessions

Extended periods of economic decline around the world characterized by significant reductions in economic activity, high unemployment, and often deflation.