When Demand Is Perfectly Inelastic, the Demand Curve Is

question 253

Multiple Choice

When demand is perfectly inelastic, the demand curve is

• A) horizontal.
• B) vertical.
• C) upward sloping.
• D) downward sloping.

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Definitions:

Marginal Cost

The additional cost incurred to produce one more unit of a good or service.

Opportunity Costs

The forfeiture of possible benefits from other options when selecting a specific choice.

Financial Investment

The purchase of a financial asset (such as a stock, bond, or mutual fund) or real asset (such as a house, land, or factories) or the building of such assets in the expectation of financial gain.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, often issued by banks.