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Perfectly elastic demand occurs when the quantity demanded drops to zero at the slightest increase in price. Which of the following best describes a perfectly inelastic demand curve?

A. It is an upward-sloping demand curve,
B. It is a downward-sloping demand curve
C. It is a horizontal demand curve
D. It is a vertical demand curve

User Debralyn
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1 Answer

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Final answer:

A perfectly inelastic demand curve is described as a vertical demand curve, and indicates that the quantity demanded remains constant, irrespective of price changes.

Step-by-step explanation:

A perfectly inelastic demand curve is best described as D. It is a vertical demand curve. This vertical demand curve indicates zero elasticity, meaning that the quantity demanded does not change regardless of the price level. Whether there is a price increase or decrease, the amount of the good demanded stays the same in the case of perfectly inelastic demand. In contrast, a perfectly elastic demand curve is a horizontal line, suggesting that an infinite quantity will be demanded at a specific price but the quantity demanded will drop to zero if the price changes even slightly.

User Twan
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