A price elasticity of zero corresponds to a demand curve that is:
A) horizontal.
B) downward sloping with a slope always equal to 1.
C) vertical.
D) either vertical or horizontal.

Question

Quizplus · Accepted Answer

A price elasticity of zero means that the percentage change in quantity demanded is zero, regardless of the percentage change in price. This corresponds to a perfectly vertical demand curve, where consumers are completely insensitive to changes in price.

A Price Elasticity of Zero Corresponds to a Demand Curve