-The curve in the above graph:
A)can only be a perfectly inelastic demand curve.
B)can only be a perfectly inelastic supply curve.
C)may be either a perfectly inelastic demand curve or a perfectly inelastic supply curve.
D)can be neither a perfectly inelastic demand curve nor a perfectly inelastic supply curve.

Question

-The curve in the above graph:
A)can only be a perfectly inelastic demand curve. 
B)can only be a perfectly inelastic supply curve. 
C)may be either a perfectly inelastic demand curve or a perfectly inelastic supply curve. 
D)can be neither a perfectly inelastic demand curve nor a perfectly inelastic supply curve.

Quizplus · Accepted Answer

The curve could be either a perfectly inelastic demand curve or a perfectly inelastic supply curve because both would be completely vertical, showing that quantity demanded or supplied would not change with a change in price. However, it could not be a perfectly elastic demand or supply curve because those would be completely horizontal, showing that quantity demanded or supplied would infinitely increase or decrease with a small change in price.

-The Curve in the Above Graph