If consumers completely cease purchasing a product when its price increases by any amount, then demand is:

A. unit elastic.
B. perfectly inelastic.
C. perfectly elastic.
D. inelastic.

Answer: C

Economics

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A difference between a share of stock in a corporation and a corporate bond is that

A) the share of stock is a legal claim while the bond is not. B) the bond owner has voting rights within the corporation whereas the stockholder does not. C) the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits. D) stocks are issued in return for funds that are lent to the corporation.

Economics

In 2008 and 2009, the budget deficit increased substantially because of

a. the weak economy. b. extraordinary spending. c. reduced tax receipts. d. all of the above

Economics