If the Demand for Some Good Fluctuates,but Supply Is Constant,then

question 89

Multiple Choice

If the demand for some good fluctuates,but supply is constant,then which of the following combinations would generally yield the greatest price fluctuations?

• A)small demand fluctuations and elastic supply
• B)large demand fluctuations and elastic supply
• C)small demand fluctuations and inelastic supply
• D)large demand fluctuations and inelastic supply
• E)small demand fluctuations and a unit elastic supply

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Definitions:

Ambiguous

Open to more than one interpretation; not having one obvious meaning.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument for the purpose of transferring ownership or authorizing its use by someone else.

Payable to Order

A financial term indicating that a payment should be made to a specific individual or entity whose name appears on the document.

Drawer

In banking and finance, the person who writes or issues a check or draft, instructing the bank to pay a specified amount to the person or entity named.