ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Infinity.
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zero.
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.One.
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None of the above.
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Detailed explanation-1: -Perfectly inelastic demand is graphed as a vertical line and indicates a price elasticity of zero at every point of the curve. This means that the same quantity will be demanded regardless of the price. Perfectly Inelastic Demand: Perfectly inelastic demand is graphed as a vertical line.
Detailed explanation-2: -The demand curve in Panel (a) is vertical. This means that price changes have no effect on quantity demanded. The numerator of the formula given in Equation 5.2 for the price elasticity of demand (percentage change in quantity demanded) is zero.
Detailed explanation-3: -When the supply curve is vertical, it means that suppliers supply the same quantity at all prices. No matter the price change, the quantity supplied does not change. Therefore, the supply is perfectly inelastic and the price elasticity of supply is equal to zero.
Detailed explanation-4: -A vertical straight line demand curve parallel to Y-axis shows no change in the demand irrespective of change in price. So that, Ed = 0. Q. When the slope of demand curve = infinity, the price elasticity of demand = 0.
Detailed explanation-5: -Answer and Explanation: The correct option is A) zero. A perfectly vertical demand curve shows that the quantity demanded will always remain fixed, no matter what the price is charged in the market. Thus, there is no change in the quantity supplied, given a change in the price of the good.