If Demand for a Given Good Is Perfectly Elastic, It

question 104

Multiple Choice

If demand for a given good is perfectly elastic, it follows that

• A)as price changes, quantity demanded does not change.
• B)as price changes, quantity demanded changes by a larger percentage.
• C)as price changes only a small percentage, quantity demanded falls to zero.
• D)as income changes only a small percentage, quantity demanded changes by a very large percentage.

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Definitions:

Matorral

A type of scrubland or shrubland plant community found in parts of the Mediterranean region and western North America.

Chaparral

A biome characterized by dense, evergreen shrubbery found in areas with hot, dry summers and mild, wet winters, primarily in the southwestern United States.

Bison

Large, grass-eating mammals found primarily in North America, known for their large size, shaggy hair, and horns.

Temperate Grassland

A biome characterized by wide-open spaces with grasses as the dominant vegetation, experiencing moderate rainfall and distinct seasonal temperature variations.