--%>
Assignment Help - homework help

Perfectly inelastic demand problem

When will an augment in supply entail a raise in price however no change in quantity?

E

Expert

Verified

In case of perfectly inelastic demand, a raise in supply leads to a raise in price although no change in quantity.

   Related Questions in Microeconomics

  • Q : Zero economic profits in long-run

    In long-run equilibrium, a monopolistically competitive firm is making: (a) economic profits. (b) zero economic profits. (c) negative economic profits. (d) revenues that exceed total costs. Can anybody suggest me t

    		•
  • Q : Law of Diminishing Merginal utility Law

    Law of Diminishing Merginal utility: This states that as consumer consumes more and more units of commodity, the utility derived from each and every successive unit goes on decreasing. According to this law TU increases at decreasing rate and the MU d

    		•
  • Q : Present Value of Future Income The

    The present value of future income is: (w) higher, the higher the interest rate. (x) lower, the higher the interest rate. (y) unaffected by the interest rate. (z) purely objective, and not subjective at all. Hello guys I want your advice. Please recommend some views for above Economics pr

    		•
  • Q : Market adjustments due to raised

    Normal 0 false false

    		•
  • Q : Equilibrium rent imposing price ceiling

    When the New York City government only permits landlords to charge $800 a month for a little apartment while equilibrium rent would be $1,500, this has imposed: (w) price floor. (x) regulation which will result in market surpluses. (y) regulation that

    		•
  • Q : Important of economies of scale to

    Karl Marx's prediction which competition ultimately leads to monopoly is most likely to be valid while: (w) diseconomies of scale discourage competition. (x) there are always constant returns to scale. (y) economies of scale are important relative to

    		•
  • Q : Monopolistic competition in long run

    When this firm initially had important market power along with potential long-run economic profit, a likely cause of the firm finally being in a stable equilibrium of an $18 price and output of 5,000 units every day would be:  (1

    		•
  • Q : Product differentiation in conduct

    Several market structures may pivot around goods which are heterogeneous, however the only market structure that absolutely needs goods to be differentiated within the minds of consumers of: (1) perfect competition. (2) pure competition. (3) monopolistic competition.

    		•
  • Q : Competitive resource markets and low

    When resource markets are competitive and transaction costs are low, in that case landowners: (1) pass forward completely any land tax. (2) can drive up the rental rate of land by changing its supply. (3) bear the full burden of any t

    		•
  • Q : Federal minimum wage rose over

    The LEAST likely outcome, when the federal minimum wage is increased $1 over the equilibrium wage rate, that would be for the: (w) unemployment rate of teenagers and unskilled workers to rise. (x) quantity of unskilled workers supplie

    		•