A Price Elasticity of Zero Corresponds to a Demand Curve

question 109

Multiple Choice

A price elasticity of zero corresponds to a demand curve that is:

• A) horizontal.
• B) downward sloping with a slope always equal to 1.
• C) vertical.
• D) either vertical or horizontal.

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Definitions:

Pharmaceutical Companies

Companies engaged in the research, development, production, and marketing of drugs or medications.

Prescription Drug

Medication that legally requires a medical doctor's prescription to be dispensed.

Personal Selling

refers to a direct form of marketing where sales representatives personally meet with potential customers to pitch a product or service.

Free Samples

A marketing strategy where small quantities of the product are given away for free to consumers to try and increase awareness or sales.