When the demand curve is vertical
A) the price elasticity of demand is negative.
B) the price elasticity of demand is positive.
C) the demand for the good is perfectly elastic.
D) the price elasticity of demand is equal to zero.
E) the price elasticity of demand is equal to -1.

Question

Quizplus · Accepted Answer

When the demand curve is vertical, it indicates that the quantity demanded does not change regardless of the price. This situation is described as perfectly inelastic demand, where the price elasticity of demand is equal to zero.

When the Demand Curve Is Vertical