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

Question

Quizplus · Accepted Answer

Perfectly inelastic demand curves are very rare and have yet to be observed in any market. While an inelastic demand curve may be relatively unresponsive to changes in price, it is not necessarily completely unresponsive like a perfectly inelastic curve would be. Additionally, an inelastic demand curve can become elastic at higher prices, which further highlights the point that it is not perfectly inelastic.

We Should Never Assume That an Inelastic Demand Curve Is