The percent change in insulin demanded for any price change is zero. The demand curve for insulin is _____, and the price elasticity of demand is _____.
A)vertical; perfectly elastic
B)vertical; perfectly inelastic
C)horizontal; perfectly elastic
D)horizontal; perfectly inelastic

Question

Quizplus · Accepted Answer

A vertical demand curve means that the quantity demanded does not change in response to a change in price. Therefore, the percent change in insulin demanded for any price change is zero, indicating a perfectly inelastic demand. In this case, the price elasticity of demand is zero.

The Percent Change in Insulin Demanded for Any Price Change