A Price Increase from $50 to $60 That Causes No

question 14

Multiple Choice

A price increase from $50 to $60 that causes no change in the quantity demanded of a good indicates that demand for the product is

• A) relatively elastic.
• B) relatively inelastic.
• C) infinitely elastic.
• D) perfectly inelastic.
• E) unit elastic.

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Definitions:

Charge Differential

The difference in electric charge between two points, which can drive a current or induce movement of charges towards equalization.

Capacitor

Electrical charge storage device. Also known as a condenser.

Step-Up Transformer

A transformer that induces a higher voltage in its secondary coil by using a larger number of windings than in the primary coil.