A Perfectly Inelastic Demand Implies That Buyers

question 37

Multiple Choice

A perfectly inelastic demand implies that buyers

• A)decrease their purchases when the price rises.
• B)purchase the same amount as before when the price rises or falls.
• C)increase their purchases only slightly when the price falls.
• D)respond substantially to an increase in price.

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Definitions:

Value Chain Management

An approach that focuses on maximising value creation and competitive advantage by effectively managing the flow of goods, information, and collaboration across all the business processes and functions.

Total Quality Management

A comprehensive approach to long-term success that views continuous improvement in all aspects of an organization's operations as a process and not as a short-term goal.

Governmental Regulatory Agencies

Official organizations responsible for creating and enforcing rules and regulations to protect public interest in various sectors such as finance, health, and the environment.

Benchmarking

A process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.