Use the following for questions 124-127.
Exhibit: Estimating Price Elasticity

-(Exhibit: Estimating Price Elasticity) The demand curve D₄ shows that:
A) there is no change in quantity demanded in response to a price change.
B) there is a quantity response only to a price decrease.
C) demand is perfectly price elastic.
D) demand is price elastic only in response to a price increase.

Question

Use the following for questions 124-127.
Exhibit: Estimating Price Elasticity
 
-(Exhibit: Estimating Price Elasticity) The demand curve D₄ shows that:
A) there is no change in quantity demanded in response to a price change. 
B) there is a quantity response only to a price decrease. 
C) demand is perfectly price elastic. 
D) demand is price elastic only in response to a price increase.

Quizplus · Accepted Answer

The demand curve D₄, which is vertical, indicates that the quantity demanded does not change regardless of the price change, representing a situation of zero elasticity or perfectly inelastic demand.

Use the Following for Questions 124-127