An Increase in Demand Will Increase Prices Least When Supply

question 122

Multiple Choice

An increase in demand will increase prices least when supply is

• A)elastic.
• B)unit elastic.
• C)inelastic (but not perfectly inelastic).
• D)perfectly inelastic.

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Definitions:

Competitive Output Markets

Markets where multiple firms sell similar or identical products, and prices are determined through competition among sellers.

Exponent

In mathematics, a number indicating how many times a base is to be multiplied by itself.

Binomial

A polynomial expression that contains exactly two terms, typically written in the form a+b.

Simplify

To make an expression less complex by combining like terms and executing arithmetic operations where possible.