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

-Assume that the demand curve for a certain good is a vertical line. This vertical demand curve illustrates the idea that:
A)consumers are unwilling to pay more than a certain price for the good.
B)the good is a complement to another good.
C)consumers are unwilling to pay less than a certain price for the good.
D)there are many substitutes for this good.
E)people will not change the quantity demanded of the good when its price is changed.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Assume that the demand curve for a certain good is a vertical line. This vertical demand curve illustrates the idea that:
A)consumers are unwilling to pay more than a certain price for the good. 
B)the good is a complement to another good. 
C)consumers are unwilling to pay less than a certain price for the good. 
D)there are many substitutes for this good. 
E)people will not change the quantity demanded of the good when its price is changed.

Quizplus · Accepted Answer

A vertical demand curve indicates that the quantity demanded for the good does not change regardless of its price. This means consumers' demand for the product is perfectly inelastic; they will buy the same amount whether the price goes up or down.

The Figure Given Below Shows the Demand Curves for Five