Which of the Following Describes a Situation in Which Demand

question 158

Multiple Choice

Which of the following describes a situation in which demand must be inelastic?

• A) The price of pens rises by 10 cents, and quantity of pens demanded falls by 50.
• B) The price of pens rises by 10 cents, and total revenue rises.
• C) A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded.
• D) Total revenue does not change when the price of pens rises.
• E) Total revenue decreases when the price of pens rises.

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Definitions:

Minimum

The smallest value in a given set of data, or the least point in a mathematical function.

Maximum Values

The highest observed values in a given dataset or range, critical in understanding the extent of variation.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Linearly Related

Describes a relationship between two variables where a change in one variable causes a proportional change in another variable.