Figure 5.6 shows a vertical demand curve. The demand in the figure below is:
Figure 5.6

A)unit elastic.
B)relatively elastic.
C)perfectly elastic.
D)relatively inelastic.
E)perfectly inelastic.

Question

Figure 5.6 shows a vertical demand curve. The demand in the figure below is:​ ​
Figure 5.6

A)unit elastic. 
B)relatively elastic. 
C)perfectly elastic. 
D)relatively inelastic. 
E)perfectly inelastic.

Quizplus · Accepted Answer

A vertical demand curve means that the quantity demanded is unaffected by changes in price. This is only possible in the case of a perfectly inelastic demand, where consumers are completely unresponsive to price changes.

Figure 56 Shows a Vertical Demand Curve