Perfectly Inelastic Demand Is Represented by a Demand Curve Which

question 98

Multiple Choice

Perfectly inelastic demand is represented by a demand curve which is ________, and relatively inelastic demand is represented by a demand curve which is ________.

• A)downward sloping; vertical
• B)horizontal; downward sloping
• C)vertical; downward sloping
• D)upward sloping; horizontal

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Definitions:

Perfectly Price Discriminate

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay.

Output

Output refers to the total amount of goods and services produced by a company, industry, or economy within a given period.

Profit-Maximizing Price

The optimal selling price for a product or service that allows a company to achieve the highest possible profit.

Single Firm

A business or company that operates independently, not part of a larger conglomerate or group.