If demand is perfectly inelastic, then the
A) elasticity of demand is 1.
B) elasticity of demand is -1.
C) demand curve will be nonexistent.
D) demand curve will be a horizontal line.
E) demand curve will be a vertical line.

Question

Quizplus · Accepted Answer

If demand is perfectly inelastic, it means that a change in price does not affect the quantity demanded. In other words, no matter how much the price changes, consumers will continue to buy the same amount of the good. This results in a vertical demand curve, where the quantity demanded is the same regardless of the price.

If Demand Is Perfectly Inelastic, Then the