Suppose Demand Is Perfectly Inelastic,and the Supply of the Good

question 300

Multiple Choice

Suppose demand is perfectly inelastic,and the supply of the good in question decreases.As a result,

• A)the equilibrium quantity decreases,and the equilibrium price is unchanged.
• B)the equilibrium price increases,and the equilibrium quantity is unchanged.
• C)the equilibrium quantity and the equilibrium price both are unchanged.
• D)buyers' total expenditure on the good is unchanged.

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Definitions:

Productivity Improvement

A process of increasing the efficiency and effectiveness of operations, usually by optimizing workflows, technology, and employee skills.

Commitment

A dedication or obligation that restricts freedom of action, often demonstrated through loyalty or an agreement to perform.

Unrealistic Optimism

The tendency to overestimate the likelihood of positive outcomes and underestimate the possibility of negative outcomes.

High Self-esteem

A positive assessment of one's own worth or value, characterized by confidence in one’s abilities and qualities.