If the Price of a Good Increases from $3 to $4

question 505

Multiple Choice

If the price of a good increases from $3 to $4, and the quantity demand remains unchanged, then the demand is

• A) perfectly inelastic.
• B) perfectly elastic.
• C) somewhat elastic.
• D) infinite.

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Definitions:

45-degree Line

In economics, a reference line that represents where the quantity demanded equals the quantity supplied.

Indeterminate

A state in which something cannot be exactly established, known, or decided.

Positive

A descriptor indicating an increase, growth, or beneficial effect in a particular context.

Constant

A value or parameter in mathematics and science that remains unchanged throughout a given discussion, analysis, or calculation.