Draw the demand curve for a good whose price elasticity of demand is equal to zero. Be sure to label both axes. Explain what the graph represents.

What will be an ideal response?




The demand curve in the graph is a vertical line, indicating that the quantity of the good demanded will not change no matter what happens to its price. In terms of the calculation of the price elasticity of demand, the change in quantity is zero and so, therefore, is the calculated value of the price elasticity.

Economics

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Economics