A perfectly inelastic demand implies that buyers
a. decrease their purchases when the price rises.
b. purchase the same amount as before when the price rises or falls.
c. increase their purchases only slightly when the price falls.
d. respond substantially to an increase in price.
b
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Which of the following properly matches the owner of a resource with the corresponding payment?
a. Land owners and rent b. Entrepreneurs and interest payments c. Laborers and profit d. Entrepreneurs and rent e. Capitalists and salaries
At some point during the financial crisis of 2008–2009, people with uninsured deposits at financial institutions withdrew money from their accounts at those institutions. This phenomenon characterized which element of the financial crisis?
a. the decline in confidence in financial institutions b. the credit crunch c. the economic downturn d. the decline in asset prices