. Suppose the demand for a very effective new wrinkle prevention cream is perfectly inelastic. The owner of a firm that sells the new product raises the price by 15%, as a result*

1 point

A. None of the wrinkle cream product is sold at this store.

B. No change in the quantity demanded at this store.

C. A 5% decrease in the quantity demanded at this store.

D. A 15% increase in the quantity demanded at this store.

E. All available wrinkle cream product available at the store will be sold.

Suppose that the demand for pencils is perfectly elastic. This would mean that a 5% increase in price would lead to*

1 point

A. A 5% decrease in the quantity demanded.

B. A 10 percent increase in demand.

C. A 50 percent decrease in the quantity demanded.

D. No change in quantity demand.

E. Pencils no longer demanded.