If Demand Is Perfectly Inelastic, the Absolute Value of the Price

question 23

Multiple Choice

If demand is perfectly inelastic, the absolute value of the price elasticity of demand is

• A)zero.
• B)less than one.
• C)more than one.
• D)equal to the absolute value of the slope of the demand curve.

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Definitions:

Units

A measure of quantity, such as a piece, item, or standard measurement, used to quantify inventory, production levels, or sales volumes.

Planning Budget

A financial plan that estimates income and expenditures over a specified future period, often used for strategic planning.

Budgeting Formulas

Mathematical expressions used to estimate and plan future financial operations and performance.

Net Operating Income

The profit generated from a company's everyday business operations, excluding taxes and interest.