Question

Demand curve is parallel to ‘Y’-axis -

1. Perfectly inelastic demand
2. Relatively inelastic demand
3. Perfectly elastic demand
4. Unitary elastic demand

Options

• c, d

• b, d

• a, b, c

• only a

Answer 1

only a

Explanation:

When demand is perfectly inelastic, the quantity demanded does not change at all with a change in price.
Therefore, the demand curve is a vertical straight line, which is parallel to the Y-axis.