Figure 7-10

-Figure 7-10 depicts a demand curve with a price elasticity that is
A)unitary,implying that a percent change in price leads to an equal percent change in quantity demanded.
B)perfectly inelastic,implying that the same amount will be purchased regardless of the price of the good.
C)equal to zero.
D)both b and c.

Question

Figure 7-10
 
-Figure 7-10 depicts a demand curve with a price elasticity that is
A)unitary,implying that a percent change in price leads to an equal percent change in quantity demanded. 
B)perfectly inelastic,implying that the same amount will be purchased regardless of the price of the good. 
C)equal to zero. 
D)both b and c.

Quizplus · Accepted Answer

A perfectly inelastic demand curve means the quantity demanded does not change with price changes, which implies an elasticity of zero. Both options B and C describe this scenario.

Figure 7-10 -Figure 7-10 Depicts a Demand Curve with a Price Elasticity