Suppose the quantity of x is measured on the horizontal axis.If the price consumption curve is vertical when the price of x changes,then the demand for x is
A) perfectly elastic.
B) perfectly inelastic.
C) unit elastic.
D) There is not enough information to determine the price elasticity of demand for x.

Question

Quizplus · Accepted Answer

If the price consumption curve is vertical, it means that there is no change in quantity demanded (consumption) of x as the price changes. This is only possible if the demand for x is perfectly inelastic, which means that consumers are willing to pay the same price for x regardless of its price changes.

Suppose the Quantity of X Is Measured on the Horizontal