A perfectly inelastic demand curve:A) has a price elasticity coefficient greater than unity.B) has a price elasticity coefficient of unity throughout.C) graphs as a line parallel to the vertical axis.D) graphs as a line parallel to the horizontal axis.

Question

A perfectly inelastic demand curve:A)  has a price elasticity coefficient greater than unity.B)  has a price elasticity coefficient of unity throughout.C)  graphs as a line parallel to the vertical axis.D)  graphs as a line parallel to the horizontal axis.

Javen McCree · Accepted Answer

Final Answer : C, Explanation :  A perfectly inelastic demand curve is represented graphically as a vertical line, indicating that the quantity demanded does not change regardless of changes in price. This is why it is described as being parallel to the vertical axis.

A perfectly inelastic demand curve:

A) has a price elasticity coefficient greater than unity.
B) has a price elasticity coefficient of unity throughout.
C) graphs as a line parallel to the vertical axis.
D) graphs as a line parallel to the horizontal axis.

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