Which of the following statements describes a perfectly inelastic demand? A. Walgreens does not find any change in the number of people buying chlorthalidone after a 7 percent rise B. I prefer taking the subway to work rather than driving because of high fuel prices C. The government is promoting generic drugs that are much cheaper D. A large number of youngsters buy roses from Colombian rose-growers before Valentine's Day The demand for plums is unit elastic if __ A. a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded B. the price of plums does not change after a drought C. any increase in the price of plums results in a 1 percent decrease in the quantity of plums demanded D. my demand for plums increases when the price of apples falls Which of the following statements describes an inelastic demand? A. A rise in the tax rate has decreased imports of auto parts from China B. People are buying HDTVs before the Super Bowl game begins C. Housing prices in London rose by 10 percent due to rock bottom interest rates. D. Megan did not buy too many hockey tickets even though their price dropped by 10 percent

Question

Which of the following statements describes a perfectly inelastic demand? A. Walgreens does not find any change in the number of people buying chlorthalidone after a 7 percent rise B. I prefer taking the subway to work rather than driving because of high fuel prices C. The government is promoting generic drugs that are much cheaper D. A large number of youngsters buy roses from Colombian rose-growers before Valentine's Day The demand for plums is unit elastic if __ A. a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded B. the price of plums does not change after a drought C. any increase in the price of plums results in a 1 percent decrease in the quantity of plums demanded D. my demand for plums increases when the price of apples falls Which of the following statements describes an inelastic demand? A. A rise in the tax rate has decreased imports of auto parts from China B. People are buying HDTVs before the Super Bowl game begins C. Housing prices in London rose by 10 percent due to rock bottom interest rates. D. Megan did not buy too many hockey tickets even though their price dropped by 10 percent

Answer 1

1. The correct answer is A. Walgreens does not find any change in the number of people buying chlorthalidone after a 7 percent rise.Explanation: In a perfectly inelastic demand, the quantity demanded does not change at all when the price changes. In this case, Walgreens does not find any change in the number of people buying chlorthalidone after a 7 percent rise, indicating that the demand is perfectly inelastic.2. The correct answer is A. a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded.Explanation: Unit elastic demand means that the percentage change in quantity demanded is equal to the percentage change in price. In this case, a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded, indicating that the demand is unit elastic.3. The correct answer is A. A rise in the tax rate has decreased imports of auto parts from China.Explanation: Inelastic demand means that the quantity demanded is relatively insensitive to changes in price. In this case, a rise in the tax rate has decreased imports of auto parts from China, indicating that the demand for auto parts is inelastic.

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