In the real world, demand is not likely to be perfectly inelastic at every price because
a. no substitutes exist for some goods
b. some consumers will be unable to afford very high prices with given incomes
c. at low prices, consumers always want a lot
d. consumers are willing to pay any price for certain goods
e. the prices of certain goods don't change
B
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Incentives work by changing the trade-offs faced by individuals
Indicate whether the statement is true or false
The kinked demand curve is composed of two segments of two demand curves that intersect. The two segments that make up the kinked demand curves are
a. both related to industry demand b. derived by subtracting the firm's demand curve from the market demand curve and adding it to the industry demand curve c. derived from the firm demand curve and the industry demand curve d. the least elastic segment above price and the more elastic segment below price e. the more elastic segment above price and the least elastic segment below price