The law of demand states that a. an increase in the income of buyers decreases the quantity demanded. Maple nut ice cream would tend to have a very price sensitive demand elasticity because a. other flavors of ice cream are almost perfect substitutes. The demand for a good tends to be more price sensitive a. the greater the availability of close substitutes. All of the above are correct. None of the above are correct.
Elasticity of demand is closely related to the slope of the demand curve.
A perfectly inelastic demand implies that a. the buyers decrease their purchases when the price rises. If the demand for good Z is inelastic, then a decrease in the price of Z will cause a. an increase in total revenue. There is insufficient information to answer this question. If a given change in the price of a good results in no change in total revenue, a. the demand for the good must be elastic. If an increase in income results in a decrease in the quantity of a good demanded, then the good is a. normal.