When Demand for a Product Is Very Elastic and Prices

question 33

Multiple Choice

When demand for a product is very elastic and prices are increased, demand will ________.

• A) remain the same, and operating profits will increase
• B) remain the same, and operating profits may either increase or decrease
• C) decrease, and operating profits will decrease
• D) decrease, and operating profits may either increase or decrease

---

Definitions:

Hallucinogen

Hallucinogen is a substance that induces alterations in perception, thinking, and emotions, leading to experiences that differ from objective reality.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception and mood.

Amphetamine

A stimulant drug that increases the activity in the central nervous system, boosting energy, concentration, and alertness.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.