Which of the Following Describes a Situation in Which Demand

question 158

Multiple Choice

Which of the following describes a situation in which demand must be inelastic?

• A) The price of pens rises by 10 cents, and quantity of pens demanded falls by 50.
• B) The price of pens rises by 10 cents, and total revenue rises.
• C) A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded.
• D) Total revenue does not change when the price of pens rises.
• E) Total revenue decreases when the price of pens rises.

---

Definitions:

U.S. Dollars

The official currency of the United States, widely used as a benchmark and reserve currency around the world.

Balance of Payments

A statement that summarizes an economy's transactions with the rest of the world for a specific time period.

Specific Accounts

Accounts designated for recording particular transactions or financial activities that have unique characteristics.

International Monetary Fund

An international organization designed to foster global monetary cooperation, secure financial stability, and facilitate international trade among its member countries.