Perfectly Inelastic Demand Means That Consumers

question 104

Multiple Choice

Perfectly inelastic demand means that consumers

• A) are willing to buy any quantity of the good at a given price, but none at higher prices.
• B) decrease their consumption as price rises.
• C) increase their consumption as price rises.
• D) will buy a certain quantity, regardless of price.
• E) will buy a huge, almost infinite amount more, if the price falls just a little.

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Definitions:

Pure Monopolist

A market condition where a single firm has exclusive control over the supply of a product or service, and no close substitutes exist.

Short Run

The short run in economics is a period during which at least one input, such as plant size, is fixed and cannot be changed.

Price Discrimination

A pricing strategy where identical or substantially similar products or services are sold at different prices to different buyers.

Physically Separated

A state or condition where two or more entities are not connected or in direct contact with each other, often referring to geographical distance.