When Demand Is Perfectly Inelastic

question 145

Multiple Choice

When demand is perfectly inelastic:

• A) the demand curve is perfectly vertical.
• B) the demand curve is perfectly horizontal.
• C) the measured elasticity is exactly −1.
• D) the response to a change in price is immediate.

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Definitions:

Inventory Purchasing

The process of acquiring goods and materials that a company intends to sell in its normal business operations.

Sporting Goods Store

A retail business specializing in the sale of sports equipment and related items for various physical activities and sports.

Lump-sum

A one-time payment executed at a specific moment, rather than several payments spread out over a period.

Installments

A method of payment where the total cost is divided into smaller, periodic payments over a set period of time.