2. Perfectly inelastic demand curve is parallel to the X axis. State whether the following statements are TRUE and FALSE.

State whether the following statements are TRUE and FALSE.
2. Perfectly inelastic demand curve is parallel to the X axis.
Answer: 
FALSE
Perfectly inelastic demand implies that the demand for the commodity is completely unresponsive to the change in the price of the commodity. That is, a change in price has no effect on the demand. A specific quantity of the good would be demanded no matter the price. In such cases, the demand curve is vertical line parallel to Y axis.

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