In the Case of Perfectly Inelastic Demand, the Demand Curve

question 60

Multiple Choice

In the case of perfectly inelastic demand, the demand curve is

• A) upward sloping.
• B) downward sloping.
• C) vertical.
• D) horizontal.

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Definitions:

State-Owned Bridge

A bridge that is owned, financed, and operated by the government or state authorities, indicating public ownership and responsibility.

Public Good

A good that is non-excludable and non-rivalrous, meaning its use by one person does not reduce its availability to others, and no one can be effectively excluded from using it.

Common Resource

A resource like air or water that provides users with tangible benefits but is difficult to exclude non-payers from using, often leading to overuse.

Property Rights

Legal rights and claims governing the use, transfer, and disposal of property, which can apply to both tangible and intangible assets.