If Demand Is Perfectly Inelastic,then

question 122

Multiple Choice

If demand is perfectly inelastic,then:

• A)the elasticity of demand is 1.
• B)the elasticity of demand is -1.
• C)the demand curve will be nonexistent.
• D)the demand curve will be a horizontal line.
• E)quantity demanded does not change when price changes.

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Definitions:

Allowances

A revision of the definition referring to sums of money set aside or given for a specific purpose, such as deductions from taxable income to account for certain expenses.

State Income Tax

Taxes levied by individual states on the income earned by residents and, sometimes, non-residents within the state.

Pay Periods

Specific intervals or durations of time for which employees receive their wages or salaries.

Hourly Workers

Employees who are paid for each hour worked, as opposed to salaried workers who receive a set amount regardless of hours worked.