If Demand Is Perfectly Inelastic, Then the

question 82

Multiple Choice

If demand is perfectly inelastic, then the

• A) elasticity of demand is 1.
• B) elasticity of demand is -1.
• C) demand curve will be nonexistent.
• D) demand curve will be a horizontal line.
• E) demand curve will be a vertical line.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale.

Willing Supplier

An entity or individual that is ready and able to provide goods or services at a certain price.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive in the market.

Market Price

The ongoing value at which a commodity or service is offered for buy or sell in a trading environment.