Inelastic Demand Exists When

question 412

Multiple Choice

Inelastic demand exists when

• A)a small percentage increase in price produces a smaller percentage decrease in quantity demanded and total revenue falls.
• B)a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls.
• C)an increase in price causes a larger increase in quantity demanded and total revenue falls to zero.
• D)the quantity demanded remains the same regardless of level of price and total revenue is unchanged.
• E)a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

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Definitions:

Immanent

Refers to the presence and operation of a deity or divine creative life force within the material world, as opposed to being transcendent or beyond it.

Transcendent

Going beyond ordinary limits; surpassing; exceeding or rising above traditional boundaries.

Western Philosopher

A philosopher originating from or associated with the Western world, traditionally including thinkers from European and other culturally related regions.

Ultimate Reality

The most fundamental nature or essence of the universe, often seen as beyond the grasp of human perception and understanding.