Suppose the Demand for Rescue Services in Our National Parks

question 288

Multiple Choice

Suppose the demand for rescue services in our national parks is perfectly inelastic.This fact would mean that a 31 percent increase in rescue fees leads to

• A) a 31 percent decrease in the quantity demanded.
• B) a 31 percent increase in demand.
• C) a 31 percent decrease in demand.
• D) no change in the quantity demanded.
• E) a decrease in the quantity demanded to 0 rescues.

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Definitions:

Pure Capitalist Economy

An economic system characterized by private ownership of resources and the use of market mechanisms to allocate goods and services with minimal government intervention.

Government Role

The activities, responsibilities, and powers of a government in shaping society, economy, and ensuring public welfare.

United States

A country located in North America, consisting of 50 states and known for its large size, diverse population, and influential role in global affairs.

Capitalism

An economic system where private individuals own and control trade and industry rather than them being controlled by the state.