Suppose Demand Is Perfectly Inelastic,and the Supply of the Good

question 300

Multiple Choice

Suppose demand is perfectly inelastic,and the supply of the good in question decreases.As a result,

• A)the equilibrium quantity decreases,and the equilibrium price is unchanged.
• B)the equilibrium price increases,and the equilibrium quantity is unchanged.
• C)the equilibrium quantity and the equilibrium price both are unchanged.
• D)buyers' total expenditure on the good is unchanged.

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Definitions:

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The fundamental principles and established precedents according to which a state or other organization is governed.

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Crimes that are defined by statute rather than by common law, specifically describing the prohibited conduct, the legal parameters of the offense, and the accompanying penalties.

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The governmental body responsible for enacting laws within a specific jurisdiction, typically consisting of elected representatives.

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Damages designed to punish flagrant wrongdoers and to deter them and others from engaging in similar conduct in the future.