If Demand Is Inelastic

question 77

Multiple Choice

If demand is inelastic,

• A)then a 1% increase in price leads to a fall in quantity of greater than 1%.
• B)then a 1% increase in price leads to a fall in quantity of less than 1%.
• C)then a 1% increase in price leads to a fall in quantity of 1%.
• D)then a 1% increase in price leads to a rise in quantity of less than 1%.

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Definitions:

Conventional Theory

Asserts that current flows from positive to negative. Most automotive wiring schematics, terminology, and troubleshooting procedures are based on conventional theory. Its opposite is electron theory.

Vehicle Wiring Schematics

Diagrams that illustrate the electrical wiring connections and circuits in a vehicle, used for troubleshooting and repair.

Current Flow

Current flow refers to the movement of electric charge through a conductor, typically in a direction from positive to negative charge locations.

Wire Gauge

A measure of the thickness of a wire, often used in determining current capacity or electrical resistance.