When Demand Is Perfectly Inelastic,the Demand Curve Will Be

question 251

Multiple Choice

When demand is perfectly inelastic,the demand curve will be

• A)negatively sloped,because buyers decrease their purchases when the price rises.
• B)vertical,because buyers purchase the same amount as before whenever the price rises or falls.
• C)positively sloped,because buyers increase their purchases when price rises.
• D)positively sloped,because buyers increase their total expenditures when price rises.

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Definitions:

Weighted-Average Method

An inventory costing method that assumes goods are interchangeable and calculates the cost of ending inventory and the cost of goods sold based on the average cost of all similar items.

Conversion Unit

A measure used in manufacturing to quantify the input needed to produce one unit of output, often considering labor and overhead.

First-In, First-Out

An inventory valuation method where the costs of the oldest inventory items are assigned to cost of goods sold first, leaving the most recently purchased items in inventory.

Conversion

The process of changing or causing something to change from one form to another, often used in the context of converting raw materials into finished goods.