Which of the Following Is True of a Good with a Perfectly

question 73

Multiple Choice

Which of the following is true of a good with a perfectly elastic demand?

• A) For a given price change, the percentage change in quantity demanded of the good will be less than the percentage change in price.
• B) The demand curve for the good initially slopes upward, reaches its maximum, and then slopes downward.
• C) Even the smallest increase in the price of the good will cause consumers to stop consuming it completely.
• D) The quantity demanded of the good is completely unaffected by a price change.

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Definitions:

Total Utility

The total satisfaction or benefit received by consuming a certain amount of goods or services.

Consumption

The use of goods and services by households, leading to the satisfaction of wants and needs.

Utility

A measure of satisfaction or pleasure that consumers derive from consuming goods or services.

Consumption

The act of using goods and services to satisfy needs and wants, a key concept in economics relating to how goods and services are used.