QuestionAugust 4, 2025

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

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

Solution
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Answer

Perfectly inelastic demand curves are rare. Explanation 1. Analyze the Options Consider each option's validity regarding inelastic demand curves. - **Option 1**: "There has never been evidence of a perfectly inelastic demand curve." This is not entirely accurate as some goods (e.g., life-saving drugs) can exhibit near-perfect inelasticity. - **Option 2**: "An inelastic demand curve may be perfectly inelastic at some times but not others." This suggests variability, which is not typical for perfectly inelastic goods. - **Option 3**: "An inelastic demand curve may be elastic at low prices." This implies that elasticity can change with price levels, which is true for many goods. - **Option 4**: "Perfectly inelastic demand curves are rare." This is generally true as very few goods have completely unresponsive demand to price changes. 2. Determine the Most Accurate Reason The rarity of perfectly inelastic demand curves makes it unreasonable to assume all inelastic curves are perfectly inelastic.

Explanation

1. Analyze the Options<br /> Consider each option's validity regarding inelastic demand curves.<br /><br />- **Option 1**: "There has never been evidence of a perfectly inelastic demand curve." This is not entirely accurate as some goods (e.g., life-saving drugs) can exhibit near-perfect inelasticity.<br /> <br />- **Option 2**: "An inelastic demand curve may be perfectly inelastic at some times but not others." This suggests variability, which is not typical for perfectly inelastic goods.<br /> <br />- **Option 3**: "An inelastic demand curve may be elastic at low prices." This implies that elasticity can change with price levels, which is true for many goods.<br /> <br />- **Option 4**: "Perfectly inelastic demand curves are rare." This is generally true as very few goods have completely unresponsive demand to price changes.<br /><br />2. Determine the Most Accurate Reason<br /> The rarity of perfectly inelastic demand curves makes it unreasonable to assume all inelastic curves are perfectly inelastic.
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