If the Demand Curve Is Perfectly Inelastic, Then an Increase

question 199

Multiple Choice

If the demand curve is perfectly inelastic, then an increase in supply will:

• A)increase both the price and the quantity exchanged.
• B)increase the price but result in no change in the quantity exchanged.
• C)increase the quantity exchanged but result in no change in the price.
• D)decrease the price but result in no change in the quantity exchanged.
• E)do none of the above.

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Definitions:

Net Income

Net income is the total earnings of a company after deducting all expenses, taxes, and losses, indicating the company's profitability over a specific period.

Ending Inventory

The value of the goods available for sale at the end of an accounting period.

FOB Destination

Freight terms in which the seller pays the transportation costs from the shipping point to the final destination.

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.