When Demand Is Perfectly Inelastic, an Increase in Price Will

question 99

Multiple Choice

When demand is perfectly inelastic, an increase in price will result in

• A) a decrease in total revenue.
• B) an increase in total revenue.
• C) no change in total revenue.
• D) a decrease in quantity demanded.
• E) an increase in quantity demanded.

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Definitions:

Pay It Forward

The act of repaying the benefits one has received by providing benefits to others, rather than to the original benefactor.

Upstream Reciprocity

A concept in social psychology suggesting that the act of being helped often leads to an individual helping someone else other than their original benefactor.

Pro Social Behavior

Acts performed with the intention to benefit others, such as helping, sharing, or comforting.

Rule Of Law

The principle that all people and institutions are subject to and accountable to law that is fairly applied and enforced.