A Perfectly Inelastic Demand Is One in Which The

question 91

Multiple Choice

A perfectly inelastic demand is one in which the:

• A) demand curve is perfectly vertical.
• B) demand curve is perfectly horizontal.
• C) measured elasticity is exactly 1.
• D) response to a change in price is immediate.

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Definitions:

Enterprise Fund

A fund established by a government to account for operations financed by user charges, often used for utilities and public services.

Journal Entry

A recording of a transaction in an accounting journal that notes the debits and credits affecting the accounts involved.

GASB Statement No. 87

A statement issued by the Governmental Accounting Standards Board establishing guidelines for reporting lease transactions in governmental financial statements.

Financing Leases

Long-term lease agreements where the lessee assumes many of the economic risks and rewards of ownership.