Suppose Demand Is Perfectly Elastic,and the Supply of the Good

question 277

Multiple Choice

Suppose demand is perfectly elastic,and the supply of the good in question decreases.As a result,

• A)the equilibrium quantity decreases,and the equilibrium price is unchanged.
• B)the equilibrium price increases,and the equilibrium quantity is unchanged.
• C)the equilibrium quantity and the equilibrium price both are unchanged.
• D)buyers' total expenditure on the good is unchanged.

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Definitions:

Marketing ROIs

The return on investment from marketing activities, measuring the profitability and effectiveness of marketing expenditures.

Marketing Resources

Assets such as knowledge, tools, and skills used by organizations to develop, implement, and evaluate marketing strategies.

Product Lines

Groups of related products marketed by a company, each serving a similar function or market.

SWOT Analysis

A strategic planning tool that assesses Strengths, Weaknesses, Opportunities, and Threats related to a business or project.