Which of the Following Describes a Situation in Which Demand

question 46

Multiple Choice

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

• A) Total revenue decreases by 10 percent when the price of jeans rises by 10 percent.
• B) Total revenue decreases by less than 10 percent when the price of jeans rises by 10 percent.
• C) Total revenue increases by more than 10 percent when the price of jeans rises by 10 percent.
• D) Total revenue decreases by $10 when the price of jeans rises by $10.
• E) Total revenue decreases by more than $10 when the price of jeans rises by $10.

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Definitions:

Gold Supply

The total amount of gold available in the market, including mined gold, recycled gold, and central bank gold reserves.

Gold Standard

A monetary system where a country's currency has a value directly linked to gold, allowing it to be freely converted into fixed amounts of gold.

International Currency

A currency that is used for international trade and investment, accepted across national borders.

U.S. Dollars

The official currency of the United States, widely used as a standard of exchange in international markets.