Suppose the price elasticity of demand for a novel translated into English is perfectly inelastic. Assume the initial price of the novel is $24 and the quantity demanded is 222 copies per year. If the price of the novel increases by $3, then the quantity demanded will be ___ copies per year. (is it 222 copies?).

Suppose the price elasticity of demand for a mystery novel by Stephen King is infinitely elastic. in this example, assume the initial price of the novel is $26 and the quantity demanded is 14 thousand copies per year. If the price of the mystery novel increases by $1, then the quantity demanded will be ___ copies per year.

For the first scenario with perfectly inelastic demand, it means that the quantity demanded does not change regardless of the price. In this case, since the price of the novel increases by $3, the quantity demanded would still be 222 copies per year. Therefore, you are correct, the quantity demanded remains at 222 copies.

For the second scenario with infinitely elastic demand, it means that any increase in price would lead to an infinite decrease in the quantity demanded. In this case, if the price of the mystery novel increases by $1, the quantity demanded would decrease to 0 copies per year.

For a perfectly inelastic demand, the quantity demanded remains the same regardless of price changes. So, in the first example, if the price increases by $3, the quantity demanded will still be 222 copies per year.

For an infinitely elastic demand, even a slight increase in price leads to an infinite decrease in quantity demanded. Therefore, in the second example, if the price of the mystery novel increases by $1, the quantity demanded will decrease to zero copies per year.

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