The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Refer to Figure 6.1. Which of the following is true of the demand curve for A?
A)Consumers purchase any quantity of A regardless of the price.
B)There is no change in the quantity demanded of A as the price changes.
C)A small price change will cause consumers to change their consumption by a much larger quantity.
D)The smallest price increase will cause consumers to switch to the producer with a lower price.
E)The price elasticity of demand for A is equal to 1.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Refer to Figure 6.1. Which of the following is true of the demand curve for A?
A)Consumers purchase any quantity of A regardless of the price. 
B)There is no change in the quantity demanded of A as the price changes. 
C)A small price change will cause consumers to change their consumption by a much larger quantity. 
D)The smallest price increase will cause consumers to switch to the producer with a lower price. 
E)The price elasticity of demand for A is equal to 1.

Quizplus · Accepted Answer

The demand curve for A is perfectly vertical, indicating that there is no change in the quantity demanded of A as the price changes. This means that the demand for A is perfectly inelastic.

The Figure Given Below Shows the Demand Curves for Five