When supply is perfectly elastic, changes in demand have no effect on price
举一反三
- In a commodity economy, the relationship among value, price, supply and demand is ( ) A: Prices are influenced by supply and demand and fluctuate around value B: Price is determined by value, reflecting value but not supply and demand C: Price is affected by value and changes with supply and demand D: Price is determined by value, reflecting value and supply and demand E: Price is determined by value, and affected by supply and demand. It also restricts supply and demand
- If the price of a commodity changes by 3% and the quantity supplied<br/>changes by 2%, the supply of the commodity ( ) A: inelastic B: elastic C: unit elastic D: completely inelastic
- The demand for corn increases. As a result, the price of corn will ________, and the less elastic the supply of corn, the ________ will be the effect on the price. A: fall; smaller B: fall; greater C: rise; smaller D: rise; greater
- Marvin loves chocolate truffles. As the price of a chocolate truffle increases from $1 to $2 to $3, Marvin continues to buy a dozen chocolate truffles every week. Marvin's demand for chocolate truffles is ________. A: elastic B: unit elastic C: illustrated by a horizontal demand curve D: perfectly inelastic
- If the demand for KFC chicken is price elastic, a fall in the price of KFC chicken will raise the total revenue.