A perfectly inelastic demand curve
A)Is a horizontal curve parallel to the horizontal axis
B)Has an elasticity of demand between 0 and 1
C)Represents the demand curve of a product with no close substitutes
D)None of the above

Question

Quizplus · Accepted Answer

A perfectly inelastic demand curve represents the demand curve of a product with no close substitutes, meaning that consumers will continue to buy the product at the same quantity regardless of changes in its price. A horizontal curve parallel to the horizontal axis represents a perfectly elastic demand curve, while an elasticity of demand between 0 and 1 represents an inelastic demand curve, but not a perfectly inelastic one.

A Perfectly Inelastic Demand Curve