If the Price Rises and the Total Amount Consumers Spend

question 129

Multiple Choice

If the price rises and the total amount consumers spend on the good falls to zero, then demand must be

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

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Definitions:

Production Function

A mathematical relationship expressing the output generated by a firm from different quantities of inputs.

Capital

Economic resources that are used to produce goods and services, including buildings, machinery, tools, and equipment.

Labor

The human effort, including both physical and mental, used in the production of goods and services.

Coffee Machines

Devices designed for brewing coffee, which can vary widely in their functionality, size, and brewing capacity.