VAE-0032
QUESTION
Perfectly inelastic demand curve will be?
OPTIONS
(A) Horizontal to x-axis
(B) Vertical to x-axis
(C) Downward sloping
(D) Upward raising
ANSWER
(B) Vertical to x-axis
EXPLANATION
With perfectly inelastic demand, quantity demanded remains unchanged regardless of changes in price, so the demand curve is vertical to the x-axis. A horizontal curve represents perfectly elastic demand, while upward- or downward-sloping curves do not depict perfect inelasticity. Therefore, option (B), vertical to the x-axis, is correct.
Question Navigator
Veterinary and Animal Husbandry Extension Education · 104 Questions
32
/
104
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104