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From the graph above, the price elasticity of demand is

Economics
JAMB 2013

From the graph above, the price elasticity of demand is

  • A. unitarily elastic
  • B. perfectly elastic
  • C. perfectly inelastic
  • D. fairly inelastic
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Correct Answer: Option C
Explanation

price elasticity of demand is the degree to which a change in price would affect the quantity demanded or supplied of a product. From the diagram above, price elasticity of demand is perfectly inelastic (that is,  the quantity demanded does not respond to price.) When price was zero, the quantity demanded remained unchanged/ the same.


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