When the price elasticity of demand for a good equals
A) 0, the demand curve is vertical.
B) 0, the demand curve is horizontal.
C) 1, the demand curve is vertical.
D) 1, the demand curve is horizontal.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is 0, it indicates perfectly inelastic demand, meaning quantity demanded does not change with price changes, resulting in a vertical demand curve.

When the Price Elasticity of Demand for a Good Equals