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If Demand for a Product Is Perfectly Inelastic, a Change

question 115

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If demand for a product is perfectly inelastic, a change in price will not change total revenue.


Definitions:

Polluting Good

A product or service that when produced or used, negatively impacts the environment by releasing harmful substances.

Optimal Amount

The most favorable level of a certain variable, considering conditions that maximize efficiency or outcomes.

External Benefits

Advantages or positive effects that a transaction or activity provides to people not directly involved in it.

Market Price

The current price at which an asset or service can be bought or sold in a specific market.

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