Perfectly Elastic Demand Occurs When

question 146

Multiple Choice

Perfectly elastic demand occurs when:

• A) consumers are extremely sensitive to a change in price.
• B) the quantity demanded is unchanged when price changes by any amount.
• C) consumers are slow to alter their demand when the price changes.
• D) only large changes in price affect the quantity demanded.

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Definitions:

Total Utility

Differentiated per your instruction, total utility quantifies the complete satisfaction received by a consumer from consuming various amounts of a good or service.

Marginal Utility Data

Information related to the additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Utility-Maximizing

The economic principle that assumes individuals seek to achieve the highest level of satisfaction or utility from their consumption decisions.

Marginal Utility

The added pleasure or benefit received from consuming an additional unit of a good or service.