If the coefficient of price elasticity of demand of a product is zero, then its...
ECONOMICS
WAEC 2019
If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be
- A. parallel to the quantity axis
- B. parallel to the price axis
- C. negatively sloped
- D. positively sloped
Correct Answer: B. parallel to the price axis
Explanation
When the coefficient of price elasticity of demand is equal to zero, it means demand is perfectly inelastic. This means that demand for a good does not change in response to price
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