There is one gas station in a small rural town.The owner of the station claims that he will sell the same quantity of gas no matter how high or low the price.If he is correct in this assertion,the demand curve for gas at his station must be _____,with a price elasticity of _____.
A)vertical;zero
B)vertical;infinity
C)horizontal;zero
D)horizontal;infinity

Question

Quizplus · Accepted Answer

If the owner's claim is true, it means that consumers will continue to purchase the same quantity of gas regardless of the price. This indicates a perfectly inelastic demand, which is represented by a vertical demand curve with zero price elasticity.

There Is One Gas Station in a Small Rural Town