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Question
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity which is ______.
Options
Zero
Infinite
> 1
1
Solution
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity which is Zero.
Explanation:
A demand curve that forms a vertical line parallel to the price axis illustrates zero elasticity (perfectly inelastic demand). This means that the quantity demanded does not change regardless of the price.
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