When Is Demand Said to Be Inelastic

question 42

Multiple Choice

When is demand said to be inelastic?

• A) when the demand curve and the supply curve do not cross
• B) when the total cost and total revenue are equal at all levels of demand
• C) when the calculated elasticity of demand is greater than one
• D) when the calculated elasticity of demand is less than one

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Definitions:

Payments

The transfer of money, or its equivalent, from one party to another as a fulfillment of an obligation or for the purchase of goods or services.

Yearly

Relating to or happening every year; annual.

Borrow

The act of receiving something with the intention of returning it or its equivalent to the owner at a later date.

Preferred Stock

Preferred stock is a type of equity that typically gives its holders preference over common stockholders in terms of dividends and claims on assets in the event of liquidation, but usually does not carry voting rights.