A vertical demand curve indicates that:
A) the quantity demanded will drop to zero if the price increases by any amount.
B) the quantity demanded will remain unchanged no matter what happens to the price.
C) the quantity demanded will rise if the price increases by any amount.
D) the quantity demanded will only react to large changes in price.

Question

Quizplus · Accepted Answer

A vertical demand curve represents a situation where the quantity demanded is completely inelastic, meaning it does not change regardless of price changes. This is because the good or service is considered essential or has no close substitutes.

A Vertical Demand Curve Indicates That