For a vertical demand curve,
A) slope is undefined,and price elasticity of demand is equal to 0.
B) slope is equal to 0,and price elasticity of demand is undefined.
C) slope and price elasticity of demand both are undefined.
D) slope and price elasticity of demand both are equal to 0.

Question

Quizplus · Accepted Answer

A vertical demand curve implies that consumers are completely unresponsive to changes in price (i.e. they will always buy the same amount regardless of price), resulting in a slope of undefined or "infinite". The price elasticity of demand formula involves dividing the percentage change in quantity by the percentage change in price, but if the percentage change in price is 0 due to the vertical demand curve, the result is 0 in the denominator and the price elasticity of demand is also undefined or "infinite".

For a Vertical Demand Curve