Question

Price elasticity of demand of a vertical demand curve is called:

--Perfectly elastic

--Elastic

--Inelastic

--Perfectly inelastic​

Answer 1

Answer:

If a demand curve is perfectly vertical (up and down) then we say it is perfectly inelastic. If the curve is not steep, but instead is shallow, then the good is said to be “elastic” or “highly elastic.” This means that a small change in the price of the good will have a large change in the quantity demanded.