Consider the demand curve of the form Q = a - bP. If a is a positive real number, and b = 0, then demand is
A) completely inelastic.
B) inelastic, but not completely.
C) unit elastic.
D) elastic, but not infinitely.

Question

Quizplus · Accepted Answer

When b = 0, the demand curve becomes Q = a. This means that the quantity demanded (Q) is constant regardless of the price (P). Thus, the demand is completely inelastic.

Consider the Demand Curve of the Form Q = a -