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

question 23

Multiple Choice

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

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

Understand and apply the change-of-base formula.

Apply logarithmic properties to solve equations.

Use logarithmic properties for expansion and condensation.

Calculate with logarithms without a calculator.

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Definitions:

Future Benefits

Expected advantages or gains that will be received in the future as a result of current investments or actions.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs resources and technology, illustrating trade-offs and opportunity costs.

Output Efficiency

The state of producing the maximum output with the minimum wasted effort or expense.

Productively

In a manner that results in a high degree of effectiveness or efficiency in producing desired outcomes.