A Perfectly Inelastic Demand Curve

question 39

Multiple Choice

A perfectly inelastic demand curve

• A)Is a horizontal curve parallel to the horizontal axis
• B)Has an elasticity of demand between 0 and 1
• C)Represents the demand curve of a product with no close substitutes
• D)None of the above

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Definitions:

Single Customer

Refers to a business situation where a significant portion of a company's revenue comes from sales to one customer.

Intragroup Merchandising Transactions

Transactions occurring between entities within the same group, often involving the sale and purchase of goods.

Unrealised Profits

Profits that have been earned on paper through an increase in value of assets but have not been realized through a transaction.

Consolidation Process

The method used in financial accounting to combine and report the financial statements of a parent company and its subsidiaries as one single entity.