From the graph above, the price elasticity of demand is
- unitarily elastic
- perfectly elastic
-
perfectly inelastic
- fairly inelastic
The correct answer is: 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.