Read the two statements and choose the correct option.
I. A perfectly inelastic demand curve is parallel to the price axis.
II. A perfectly elastic demand curve is parallel to the quantity axis.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A vertical curve runs parallel to the price (vertical) axis: perfectly inelastic. I is true.
A horizontal curve runs parallel to the quantity (horizontal) axis: perfectly elastic. II is true.

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

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

Read the two statements and choose the correct option.I. A perfectly inelastic demand curve is parallel to the price axis.II. A perfectly elastic demand curve is parallel to the quantity axis.