If Quantity Demanded Is Completely Unresponsive to Changes in the Price

question 128

Multiple Choice

If quantity demanded is completely unresponsive to changes in the price of good XYZ, then demand for good XYZ is

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

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Definitions:

Economic Theory

A set of principles and frameworks designed to explain and predict patterns in economic activities, consumption, production, and trade, among other aspects.

Reduction in Prices

A decrease in the cost of goods or services, typically resulting from factors like increased supply, decreased demand, or governmental intervention.

Recessionary Conditions

Economic circumstances characterized by a decline in GDP, employment, and trade lasting for a period of time.