A demand curve which is ________ represents perfectly inelastic demand, and a demand curve which is ________ represents inelastic demand.
A) downward sloping; vertical
B) horizontal; downward sloping
C) vertical; downward sloping
D) upward sloping; horizontal

Question

Quizplus · Accepted Answer

A vertical demand curve represents perfectly inelastic demand, meaning that there is no change in quantity demanded regardless of a change in price. On the other hand, a downward sloping demand curve represents inelastic demand, meaning that a change in price will lead to a proportionally smaller change in quantity demanded.

A Demand Curve Which Is ________ Represents Perfectly Inelastic Demand