Asked by
Jatin Raghuvanshi
on Oct 26, 2024
Verified
A rancher in Oklahoma decides to raise the price of her beef by 19% over the prevailing market price.If the demand for beef is perfectly elastic,this rancher's quantity demanded will:
A) fall to 0.
B) not change.
C) fall slightly.
D) increase slightly.
Perfectly Elastic
Describes a situation where the quantity demanded or supplied can change infinitely with any small change in price.
Price
The total monetary value expected, obliged, or handed over in exchange for something.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified period.
- Understand thoroughly the concept and quantitative evaluation of demand's price elasticity.
- Distinguish among elastic, inelastic, and unitary elastic demand.
Verified Answer
JF
Learning Objectives
- Understand thoroughly the concept and quantitative evaluation of demand's price elasticity.
- Distinguish among elastic, inelastic, and unitary elastic demand.