A vertical demand curve
A)is impossible.
B)reasonably represents demand for essential goods.
C)has a price elasticity of negative infinity since people will pay an infinite amount for the good.
D)represents a normal good.

Question

Quizplus · Accepted Answer

A vertical demand curve means that regardless of the price, the quantity demanded remains constant. This is only possible for goods that are essential, meaning that consumers will always demand a certain amount no matter the price. Examples of such goods include water and electricity. Therefore, option B is the correct answer. Option A is incorrect because a vertical demand curve is possible in some situations. Option C is incorrect because a vertical demand curve has an undefined price elasticity. Option D is incorrect because a vertical demand curve does not necessarily represent a normal good.

A Vertical Demand Curve