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:

Net Losses

The amount by which a company's expenses exceed its revenues over a specific period, indicating a financial loss.