Chapter 47, Problem 3MCQ

To determine

The conclusion if the price elasticity of demand is zero.

Explanation of Solution

When the price elasticity of demand for any commodity is zero, then the demand curve would remain vertical because there would be no change in the demand of that commodity with the change in price. Therefore, the demand of the commodity would be perfectly inelastic and demand curve would be vertical.

The option c is correct.

Economics Concept Introduction

Introduction:

Elasticity of demand represents the measure of sensitivity of demand to price that shows how change in price or supply of goods affects the quantity demanded.