If a Small Increase in the Price of a Good

question 168

Multiple Choice

If a small increase in the price of a good reduces quantity demanded to zero, demand is ________________ and the price elasticity of demand is equal to _______________.

• A)perfectly inelastic; zero
• B)perfectly elastic; infinity
• C)unit elastic; one
• D)perfectly elastic; zero

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Definitions:

Rational Function

A rational function is a ratio of two polynomials, where the denominator polynomial is not zero, used to describe relations that involve rates of change.

Undefined

A term used to describe an expression or result that does not have a meaningful value under given conditions, such as division by zero.

Divide

The operation of partitioning a number or algebraic expression by another, which essentially measures how many times the divisor fits into the dividend, mathematically.

Simplify

The process of altering an expression or equation to make it easier to work with, often by combining like terms or applying mathematical properties.