A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2014 · Q111 Mark
In which case will a given increase in the supply of a good cause the greatest fall in the price of the good?
Awhen the demand for the good is perfectly inelastic
Bwhen the demand for the good is infinite
Cwhen the good is an inferior good
Dwhen the good's price elasticity of demand is positive
✓ Correct answer
A: when the demand for the good is perfectly inelastic
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