3 years ago

What is the effect of a 10 percent price increase on quantity demanded if elasticity is infinite?

Business

1 answer:

Julli [10]3 years ago

4 0

Answer:

Demand drops to zero

Explanation:

Infinite elasticity of demand is also called perfect elasticity of demand.

In this scenario the demand for a product is attached to it's price.

There is an infinite change in the quantity demanded as a result of change in price.

Graphically it is a horizontal demand curve as represented in the attached

Even a small increase in price will cause demand to fall to zero.

Examples are luxury goods such as high end cars and expensive jewelry.

You might be interested in

agricultural workers and industrial laborers were almost the same number a) during 1850 b) during 1880 c) during 1890 d) during

Leni [432]

Answer:

I'm not 100% but I strongly believe it is A. as after the Civil War post 1860's the Industrial Revolution took over the nation and a majority of laborers/workers were doing Industrial work.

Explanation:

7 0

3 years ago

Which term best describes an opening at least 30 inches high and 18 inches wide in any wall or partition through which persons m

WITCHER [35]

It's C for sure because according to the question cause theirs an opening in any wall

4 0

3 years ago

Which method is the most efficient method to use to solve x^2+6x-7=0?

sweet-ann [11.9K]

(x+7)(x-1) = 0 ^x^2 + 6x - 7 = 0x 7x -1
Its really easy if you think it this way.

7 0

4 years ago

Read 2 more answers

Suppose the government implements a negative income tax plan to deal with the poverty problem. The negative income tax rate is s

Andreas93 [3]

Answer:

At least $2,500. If the family's income was $0, then the government will transfer $2,500 to them.

Explanation:

A negative income tax refers to a welfare system where individuals earning below a certain amount, instead of being taxed, receive money transfers from the government.

4 0

4 years ago

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May JuneManuf

Juli2301 [7.4K]

Answer:

Total cash expense= $181,675

Explanation:

Giving the following information:

Manufacturing cost:

April= $155,800

May= $190,300

Insurance is not paid in May.

Property tax is paid in November.

Depreciation is not a cash expense.

<u>Total cash payment May:</u>

Manufacturing cost May= 190,300*0.75= 142,725

Manufacturing cost April= 155,800*0.25= 38,950

Total cash expense= $181,675

4 0

3 years ago