If Demand Is Perfectly Inelastic, the Absolute Value of the Price

question 107

Multiple Choice

If demand is perfectly inelastic, the absolute value of the price elasticity coefficient is

• A) infinity.
• B) zero.
• C) more than one.
• D) equal to the absolute value of the slope of the demand curve.

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Definitions:

Per Month

A term indicating the occurrence or measurement of something on a monthly basis.

Compounded Quarterly

Interest on an investment or loan calculated four times a year, adding each interest payment to the principal for future calculations.

Compounded Monthly

A system for calculating interest on a monthly cycle, including the original deposit or loan amount plus the accumulated interest from earlier cycles.

Promissory Note

A written promise to pay a specified sum of money to a designated party at either a fixed or determinable future date.