If the Price Elasticity of Demand Is Zero,then Demand Is

question 113

Multiple Choice

If the price elasticity of demand is zero,then demand is

• A)elastic.
• B)inelastic.
• C)perfectly inelastic.
• D)perfectly elastic.
• E)unit elastic.

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Definitions:

Recessions

Instances of provisional economic weakness where both trading and industrial activities fall off, universally determined by a two-quarter continuous drop in GDP.

General Merchandise

A category of goods that includes a wide range of products from apparel to home goods sold by retailers.

Discount Stores

are retail outlets that sell products at prices lower than those asked by traditional retail stores, often by selling in large volumes or foregoing some aspects of service.

Inflation

A broad escalation in prices coupled with a reduction in the purchasing power of currency.