What Is the Slope of a Perfectly Inelastic Demand Curve,and

question 35

Multiple Choice

What is the slope of a perfectly inelastic demand curve,and why

• A)negatively sloped, because buyers decrease their purchases when the price rises
• B)vertical, because buyers purchase the same amount whether the price rises or falls
• C)positively sloped, because buyers respond by increasing their purchases when price rises
• D)horizontal, because buyers increase their purchases by huge amounts with slight changes in price

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Definitions:

Utility Function

A utility function is a mathematical representation that assigns a level of utility or satisfaction to combinations of goods and services consumed.

Income

Refers to the income earned, either periodically or consistently, from employment or investment ventures.

Utility Function

A mathematical expression that ranks preferences over a set of goods or outcomes, representing satisfaction or happiness derived from consumption.

Consumption

The act of using goods and services to satisfy needs and wants, which is a fundamental component of economics.