If Demand Is Perfectly Inelastic, Then

question 1

Multiple Choice

If demand is perfectly inelastic, then

• A)the own price elasticity of demand is infinite in absolute value.
• B)a small increase in price will lead to a situation where none of the good is purchased.
• C)the demand curve is vertical.
• D)neither will the demand curve be vertical, the own-price elasticity of demand be infinite in absolute value nor a small price increase lead to none of the good being purchased.

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