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.

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Definitions:

Rational Unconscious

A concept that suggests that the unconscious mind is capable of logical thought and can affect conscious decision making.

Preconscious

Part of Freud's theory of the mind, referring to the thoughts and feelings not presently in conscious awareness but that can be accessed easily.

Cognitive Factors

Refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Kelly

Referring to George Kelly, a psychologist known for his personal construct theory which posits that individuals interpret the world through their own constructs.