1. When the percentage change in the quantity demanded is less than the percentage change in? price, then demand is
A. elastic.
B. irrelevant.
C. inelastic.
D. undefined.
E. unit elastic.
2. Assume the cost of certain inputs used to produce artificial Christmas trees increases? and, at the same? time, the economy moves into a? recession, causing the incomes of consumers to decrease. Which of the following will happen to the equilibrium price and quantity of artificial Christmas? trees? (Assume artificial Christmas trees are normal? goods.)
A. Quantity will? decrease; price cannot be determined.
B. Price will? decrease; quantity cannot be determined.
C. Quantity will? increase; price cannot be determined.
D. Price will? increase; quant