Question

Quizlet:Suppose the demand for a Czech novel translated into English is perfectly inelastic. Assume the initial price of the translated novel is ​$ 28.00 28.00 and the quantity demanded is 135 135 copies per year. If the price of the translated novel increases by ​$ 2.00 2.00​, then the quantity demanded will be nothing copies per year. ​Next, suppose the demand for a mystery novel by John Grisham John Grisham is infinitely elastic. In this​ example, assume the initial price of the novel is ​$ 24.00 24.00 and the quantity demanded is 27 27 thousand copies per year. If the price of the mystery novel increases by ​$ 3.00 3.00​, then the quantity demanded will be nothing copies per year.Quizlet

Answer 1

Answer:for perfectly inelastic, the demand will be 135 per year, for infinite elastic the demand will be 27 or less as a result of increase in price

Explanation:

Perfectly inelastic demand : This can be defined as when a change in price however large causes no change in the quantity demanded of a commodity. In this case the initial price is $28.00 ,the quantity is 135, as a result of the increase in price by $2.00 to $30 it will cause no change in the quantity demanded of the novel ,the demand will still be 135

Infinite elastic demand :This is when a change in price brings about a more proportionate change in quantity demanded.. This is when a consumer react sharply to a change in price. If there is a fall in price, the quantity demanded for such a commodity increases. On the other hand, if there is an increase in price the quantity demanded falls..in this case as a result of an increase in price by $3.00 The consumer will reduce to demand for more goods , the quantity demanded may be 27 or less than 27 as a result of increase in price.