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| 1. |
Why is perfectly inelastic demand curve parallel to y axis? |
| Answer» Perfectly inelastic demand\xa0implies that there is no change in quantity demanded with a change in the prices of that good. This is shown on a graph by a straight line parallel to \'Y\' axis.\xa0In case of perfectly inelastic demand the curve is a vertical straight line parallel to \'OY\' axis. This is because the change in price of the product or service has no impact on the quantity demanded as the elasticity is equal to zero.\xa0\xa0\xa0\xa0\xa0\xa0 | |