Figure 6-5 -A Demand Curve Is Described as Perfectly Inelastic If

question 66

Multiple Choice

Figure 6-5
-A demand curve is described as perfectly inelastic if

• A)the same quantity is purchased regardless of price.
• B)the same price is charged regardless of quantity sold.
• C)neither price nor quantity demanded ever change.
• D)only quantity demanded can change.

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Definitions:

Marginal Cost

The incremental cost involved in creating an extra unit of a product or service.

Diseconomies of Scale

Occur when a firm's costs per unit increase as its output increases, opposite to economies of scale.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including labor, materials, and overhead expenses.

Car Leasing Company

A business that rents vehicles to customers for a specified period of time, often as an alternative to purchasing.