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If the coefficient of price elasticity of demand of a product is zero, then its demand ...

If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be
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  • A Parallel to the quantity axis
  • B Parallel to the price axis
  • C Negatively sloped
  • D Positively sloped
Correct Answer: Option B
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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