If Supply Is Perfectly Inelastic and Demand Increases

question 17

Multiple Choice

If supply is perfectly inelastic and demand increases,

• A) price falls and output rises.
• B) price rises and output falls.
• C) price rises and output remains unchanged.
• D) price rises and output rises.

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Definitions:

Information-processing System

A framework used to understand how humans think, perceive, remember, and learn, by comparing human cognition to the processing of a computer.

Cognitive Abilities

Mental capabilities such as thinking, reasoning, problem-solving, and memory that are crucial for understanding and interacting with the world.

Gender Differences

Gender differences refer to the distinctions in characteristics and behaviors typically associated with being male or female, influenced by biological, psychological, and cultural factors.

Spatial Abilities

Skills that enable an individual to visualize and manipulate objects and their spatial relationship in the mind.