18)Which of the following statements about the price elasticity of demand is correct? *

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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18)Which of the following statements about the price elasticity of demand is correct? *

a)When a change in a good's price does not change that good's quantity demanded, the demand curve must be vertical.

b)When a change in a good's price does not change that good's quantity demanded, the demand curve must be a rectangular hyperbola

c)When even a tiny rise in a good's price instantly reduces the good's quantity demanded to zero, the price elasticity of demand is said to be perfectly inelastic

d)When even a tiny rise in a good's price instantly reduces the good's quantity demanded to zero, the price elasticity of demand is said to be unit elastic

e)When a change in a good's price does not change that good's quantity demanded, the demand curve must be horizontal.

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