When Demand Is Perfectly Inelastic,the Demand Curve Will Be

question 251

Multiple Choice

When demand is perfectly inelastic,the demand curve will be

• A)negatively sloped,because buyers decrease their purchases when the price rises.
• B)vertical,because buyers purchase the same amount as before whenever the price rises or falls.
• C)positively sloped,because buyers increase their purchases when price rises.
• D)positively sloped,because buyers increase their total expenditures when price rises.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Capital

Represents the amount of funds provided by owners or investors to support business operations.

Owner's Equity

Owner's Equity is the total assets of an entity minus its total liabilities, representing the ownership interest in the company.

Income Statement

A financial report summarizing revenue, expenses, and profits over a given period, highlighting a company’s financial performance.