We Should Never Assume That an Inelastic Demand Curve Is

question 142

Multiple Choice

We should never assume that an inelastic demand curve is a perfectly inelastic demand curve because

• A)there has never been evidence of a perfectly inelastic demand curve.
• B)an inelastic demand curve may be perfectly inelastic at some times but not others.
• C)perfectly inelastic demand curves are rare.
• D)an inelastic demand curve may be elastic at low prices.

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Definitions:

Ratio Form

A mathematical expression that represents the relationship between two numbers or variables as a fraction.

Average Total Assets

A financial metric that represents the average value of all a company's assets over a specified period.

Return On Assets

This ratio indicates how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.

Ratio Form

A presentation format for financial statements or equations where components are displayed as a proportion of a whole.