If a demand curve has a zero elasticity,which statement best describes the curve
A)It is perfectly inelastic and vertical.
B)It is perfectly inelastic and horizontal.
C)It is perfectly elastic and vertical.
D)It is perfectly elastic and horizontal.

Question

Quizplus · Accepted Answer

When the demand curve has a zero elasticity, it means that there is no change in quantity demanded even if there is a change in price. This type of demand is called perfectly inelastic demand, and it is depicted by a vertical demand curve.

If a Demand Curve Has a Zero Elasticity,which Statement Best