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Question

If regardless of changes in its price, the quantity demanded of a good remains unchanged, then the demand curve for the good will be.

A
Horizontal
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B
Vertical
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C
Positively sloped
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D
Negatively sloped
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Solution

The correct option is C Vertical
Since the quantity demanded remains unchanged regardless of change in its prices, therefore the commodity has perfectly inelastic demand(E=0) and in this case demand curve will be vertical.
or
If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be Vertical.

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