Question

Describe the general appearance of a demand or a supply curve with zero elasticity.

Short answer

A demand or supply curve with zero elasticity is vertical in shape.

Step-by-step solution

Step 1. Introduction:

Zero elasticity is also referred to as perfect inelasticity. It is a situation in which a percentage variation in price, irrespective of size, leads to a zero variation in quantity.

Step 2. Explanation:

As the amount of quantity demanded or supplied remains the same irrespective of the prevailing price level, a demand or supply curve with zero elasticity is vertical in shape. The shape of demand and supply curves with zero elasticity is illustrated in the figure below: