If Demand Is Perfectly Inelastic

question 75

Multiple Choice

If demand is perfectly inelastic,

• A)then a 1% increase in price leads to a fall in quantity of greater than 1%.
• B)then a 1% increase in price leads to a fall in quantity of less than 1%.
• C)then a 1% increase in prices then quantity demanded falls to zero.
• D)then a 1% increase in price has no effect on quantity demanded.

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Definitions:

Association Cortex

Sometimes called association areas, the region of the cerebral cortex that is the site of the highest intellectual functions, such as thinking and problem solving.

Intellectual Functions

Cognitive capabilities related to reasoning, problem-solving, planning, abstract thinking, comprehension, and learning.

Cerebral Cortex

The outermost layer of the brain, involved in high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.

Basal Ganglia

A group of structures in the brain involved in coordinating movement, as well as aspects of cognition and emotion.