When the price elasticity of demand is perfectly inelastic,what can be said about the elasticity and the demand curve
A)The elasticity is 0 and the demand curve is vertical.
B)The elasticity is 0 and the demand curve is horizontal.
C)The elasticity approaches infinity and the demand curve is vertical.
D)The elasticity approaches infinity and the demand curve is horizontal.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is perfectly inelastic, it means that the quantity demanded does not change at all when the price changes. This implies that the elasticity is 0, as there is no percentage change in quantity demanded for any percentage change in price. This also means that the demand curve is perfectly vertical, as the price can change without affecting the quantity demanded.

When the Price Elasticity of Demand Is Perfectly Inelastic,what Can