Preferences for Brussels Sprouts Increase

question 119

Multiple Choice

Preferences for brussels sprouts increase. The price of brussels sprouts will not change if the price elasticity of

• A)demand is 0.
• B)demand is 1.
• C)supply is 0.
• D)supply is 1.
• E)supply is infinity.

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Definitions:

Market Equilibrium

A state in a market where supply equals demand, and neither buyers nor sellers have the incentive to change prices or quantities.

Demand Curves

Graphical representations showing the relationship between the price of a good or service and the quantity demanded for a given period.

Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Above Equilibrium

Above Equilibrium describes a condition where the price of a good or service is higher than the equilibrium price, leading to a surplus of supply over demand.