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From the graph above, the price elasticity of demand is



From the graph above, the price elasticity of demand is
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  • A Unitarily elastic
  • B Perfectly elastic
  • C Perfectly inelastic
  • D Fairly inelastic
Correct Answer: Option C
Explanation:
price elasticity of demand is the degree to which a change in price would affect the quantity demanded or supplied of a product. From the diagram above, price elasticity of demand is perfectly inelastic (that is,  the quantity demanded does not respond to price.) When price was zero, the quantity demanded remained unchanged/ the same.

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