If the demand curve for a product is vertical, then
A) the demand for the good is perfectly elastic.
B) consumers are highly responsive to price changes.
C) its price elasticity of demand is equal to zero.
D) consumers may purchase all they want to at the established market price.

Question

Quizplus · Accepted Answer

A vertical demand curve indicates that there is no change in quantity demanded in response to a change in price, which means that the price elasticity of demand is equal to zero. This also means that consumers are not responsive to price changes, and the demand for the good is not perfectly elastic. However, it does not necessarily mean that consumers may purchase all they want at the established market price.

If the Demand Curve for a Product Is Vertical, Then