If the Price of Salt Increases and the Quantity Demanded

question 257

Multiple Choice

If the price of salt increases and the quantity demanded does NOT change, then

• A) the price elasticity of demand is equal to zero.
• B) demand is perfectly inelastic.
• C) the demand curve for salt is horizontal.
• D) Both answers A and B are correct.

---

Definitions:

Population Decline

A decrease in the number of people in a population due to factors such as lower birth rates, higher death rates, or migration.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the development of innovations.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the hours worked to produce them.

Specializing

The process of focusing effort and resources on a limited number of activities to gain efficiency and expertise.