An Increase in Demand Will Cause a Relatively Small Increase

question 22

Multiple Choice

An increase in demand will cause a relatively small increase in price when

• A) the increase in demand is small.
• B) demand is highly elastic.
• C) supply is highly elastic.
• D) all of the above

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Definitions:

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, as opposed to being owned by the government.

External Benefit

A positive effect or advantage that extends beyond the direct participants of an economic transaction to affect others who are not involved in the transaction.

First-Chair Violinist

The lead violinist in a symphony orchestra, often responsible for playing solos and leading the violin section.

Symphony Orchestra

A large ensemble of musicians, typically including strings, woodwinds, brass, and percussion, performing classical and other types of music.