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JAMB Economics 2013 Question 10

Question 10

Elasticity

Use the graph below to answer the question.
From the graph above, the price elasticity of demand is

Diagram for this question
  1. A.unitarily elastic.
  2. B.perfectly elastic.
  3. C.perfectly inelastic.
  4. D.fairly inelastic.
Show the answer and explanation

Answer: C (perfectly inelastic.)

Explanation

The demand curve is vertical: the same quantity Q is bought at every price, so demand is perfectly inelastic.