The price elasticity of demand for a vertical demand curve is:
A) perfectly elastic.
B) perfectly inelastic.
C) unitary elastic.
D) elastic.
E) inelastic.

Question

Quizplus · Accepted Answer

For a vertical demand curve, the price remains constant regardless of the quantity demanded. This means that the percentage change in quantity demanded is always zero, making the price elasticity of demand equal to zero. A price elasticity of zero indicates perfectly inelastic demand.

The Price Elasticity of Demand for a Vertical Demand Curve