If the Price of a Good Increases by 10% and the Quantity

question 28

Multiple Choice

If the price of a good increases by 10% and the quantity demanded remains unchanged, then at that price, the good is

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

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has significant power to influence the market price.

Quantity Demanded

The specific amount of a good or service that consumers are willing and able to purchase at a given price.

Average Revenue

The amount of income generated per unit of sale or, broadly, the total revenue divided by the number of units sold.

Competitive Industry

A competitive industry is one where numerous firms are in competition with each other to sell similar products or services, with none having a dominant market position.