A Demand Curve That Is Perfectly Inelastic Is

question 35

Multiple Choice

A demand curve that is perfectly inelastic is

• A) horizontal.
• B) vertical.
• C) at a 45 degree angle.
• D) parallel to the X-axis.

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Definitions:

Risky Portfolio

A collection of investments with higher expected returns that comes with a greater level of risk and volatility compared to the overall market.

Standard Deviation

A statistical measure that quantifies the variation or spread of a set of numbers from its average, used to gauge volatility.

Risk-Free Asset

An investment that is expected to deliver its return with certainty, with government bonds often considered as the closest example.

Risky Portfolio

An investment portfolio that contains assets with higher volatility and potential for significant variations in returns, offering the possibility of higher gains at the risk of greater losses.