The demand curve in the graph is vertical. Its price elasticity of demand is A vertical demand curve D at a quantity of 40, at every price.

The demand curve in the graph is vertical.

Question 36

EasyOriginal question

The demand curve in the graph is vertical. Its price elasticity of demand is

A vertical demand curve D at a quantity of 40, at every price.

infinite: perfectly elasticCorrect answerYour answerone: unitary elasticCorrect answerYour answerzero: perfectly inelasticCorrect answerYour answergreater than oneCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Whatever the price, the quantity demanded stays at 40.
No change in quantity means a percentage change of 0, so eₚ = 0.

Concept: Perfectly inelastic demand
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsDegrees of elasticity

Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.

Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.

The demand curve in the graph is vertical.

Question 36

Explanation