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A demand curve parallel to the Y-axis indicates

...

A demand curve parallel to the Y-axis indicates

A.

Fairly elastic demand

B.

Perfectly elastic demand

C.

Perfectly inelastic

D.

Fairly inelastic demand

Correct answer is C

When the demand curve is parallel to the vertical axis, it means, that the same amount of goods are demanded at any price level. Which further means that there is no effect of change in price on the quantity demanded. Hence, the product is perfectly Inelastic and quantitatively, elasticity of demand is 0.