We Should Never Assume That an Inelastic Demand Curve Is

question 260

Multiple Choice

We should never assume that an inelastic demand curve is a perfectly inelastic demand curve because

• A) there has never been evidence of a perfectly inelastic demand curve.
• B) an inelastic demand curve may be perfectly inelastic at some times but not others.
• C) perfectly inelastic demand curves are rare.
• D) an inelastic demand curve may be elastic at high prices.

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Definitions:

Hot Spots

Locations on the Earth's surface that have experienced extensive volcanic activity, typically situated above a stationary plume of hot mantle material.

Hot Spots

Areas of the Earth's mantle that are anomalously hot compared to surrounding areas, causing volcanic activity on the surface.

Linear Island Chains

Linear arrangements of islands, often volcanic, aligned along a single submarine ridge due to tectonic activity.

Oceanic Plateaus

Large, flat, elevated areas of the seabed, formed by volcanic activity and often found in the deep ocean.