Question

If the slope of a demand curve is infinite, then the price elasticity of demand is:...

If the slope of a demand curve is infinite, then the price elasticity of demand is:

Select one:

a. zero.

b. infinite.

c. one.

d. equal to the price of the good.

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Answer #1

If the slope of a demand curve is infinite, then the price elasticity of demand is:

Correct answer will be a. Zero.

When the demand curve is a vertical line, it's slope will be infinite but the price elasticity will be zero. Slope is the ratio between the changes in the vertical axis and the changes in the horizontal axis. If the demand curve is a vertical line, there will be some changes in the vertical axis but the horizontal axis remains unchanged. If you calculate the ratio it will be infinite. However, the price elasticity will be zero, means the quantity demanded remains unchanged to a change in the price.

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