A demand curve showing that consumers will buy the same quantity regardless of price is described as:

Study for the FFA Farm Business Management Contest Exam. Prepare with versatile practice questions, flashcards, and in-depth explanations. Boost your readiness for success!

Multiple Choice

A demand curve showing that consumers will buy the same quantity regardless of price is described as:

Explanation:
This question tests price elasticity of demand. If consumers will buy the same quantity regardless of price, their quantity demanded doesn’t respond to price changes, so the elasticity is zero. A zero elasticity corresponds to a vertical demand curve, which is described as perfectly inelastic. In other words, when demand is perfectly inelastic, price changes have no effect on how much is bought. An example could be a life‑sustaining good in the short run, where consumers must purchase the same amount even if prices rise. Other terms don’t fit because: - Elastic means quantity changes more than price (elasticity > 1). - Unit elastic means quantity changes proportionally to price (elasticity = 1). - Perfectly elastic means quantity would collapse to zero or jump to any amount with a tiny price change, producing a horizontal demand curve.

This question tests price elasticity of demand. If consumers will buy the same quantity regardless of price, their quantity demanded doesn’t respond to price changes, so the elasticity is zero. A zero elasticity corresponds to a vertical demand curve, which is described as perfectly inelastic.

In other words, when demand is perfectly inelastic, price changes have no effect on how much is bought. An example could be a life‑sustaining good in the short run, where consumers must purchase the same amount even if prices rise.

Other terms don’t fit because:

  • Elastic means quantity changes more than price (elasticity > 1).

  • Unit elastic means quantity changes proportionally to price (elasticity = 1).

  • Perfectly elastic means quantity would collapse to zero or jump to any amount with a tiny price change, producing a horizontal demand curve.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy