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WAEC Economics 2002 Question 21

Question 21

Elasticity

What type of price elasticity of demand is the diagram below representing?

Diagram for this question
  1. A.Perfectly inelastic demand
  2. B.Perfectly elastic demand
  3. C.Fairly inelastic demand
  4. D.Unitary elasticity
Show the answer and explanation

Answer: A (Perfectly inelastic demand)

Explanation

A vertical demand curve means the same quantity is bought at every price: perfectly inelastic demand.