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

Question

Quizplus · Accepted Answer

If the percent change in quantity demanded for water is zero, it implies that the demand for water is not affected by a change in price. This can only happen with a vertical demand curve, which means that the price elasticity of demand is perfectly inelastic.

Suppose the Percent Change in the Quantity Demanded for Water