Why should we never assume that an inelastic demand curve is a perfectly inelastic demand curve?
A)because there has never been evidence of a perfectly inelastic demand curve.
B)because an inelastic demand curve may be perfectly inelastic at some times but not others.
C)because perfectly inelastic demand curves are rare.
D)because an inelastic demand curve may be elastic at high prices.

Question

Quizplus · Accepted Answer

Perfectly inelastic demand curves are rare, as they imply that quantity demanded does not change at all with price changes, which is uncommon in real-world scenarios. Most goods and services have some degree of price sensitivity.

Why Should We Never Assume That an Inelastic Demand Curve