Exhibit 20-7

-Refer to Exhibit 20-7.Which of the graphs shows a perfectly inelastic demand curve?
A) (1)
B) (2)
C) (3) and (4)
D) none of the above

Question

Exhibit 20-7
 
-Refer to Exhibit 20-7.Which of the graphs shows a perfectly inelastic demand curve?
A) (1) 
B) (2) 
C) (3) and (4) 
D) none of the above

Quizplus · Accepted Answer

A perfectly inelastic demand curve means that regardless of the price change, the quantity demanded remains constant. In graph (1), the demand line is perfectly vertical, indicating that the quantity demanded remains the same regardless of the price, making it a perfectly inelastic demand curve.

Exhibit 20-7 -Refer to Exhibit 20-7.Which of the Graphs Shows a Perfectly