If the coefficient of price elasticity of demand of a product is zero; then its demand curve will be?

A. parallel to the quantity axis
B. parallel to the price axis
C. negatively sloped
D. positively sloped

Correct Answer:

Option B – parallel to the price axis

Explanation

When the coefficient of price elasticity of demand is equal to zero, it means demand is perfectly inelastic. This means that demand for a good does not change in response to price.