If the Own Price Elasticity of Demand Is Infinite in Absolute

question 112

Multiple Choice

If the own price elasticity of demand is infinite in absolute value,then:

• A) demand is perfectly inelastic.
• B) the demand curve is horizontal.
• C) consumers do not respond at all to changes in price.
• D) demand is neither perfectly inelastic nor is the demand curve horizontal.

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Definitions:

Liquidation

The process of closing a business, selling its assets, and using the proceeds to pay creditors and shareholders.

Preliminary Distribution

An initial allocation or dispersion of assets or dividends before the final calculation or decision has been made.

Partnership Assets

All forms of property, including tangible and intangible items, owned by a partnership entity and used in the operation of its business.

Solvent Partner

A partner in a business who has the ability to pay all their debts.