Suppose that the demand curve for wheat in each country is perfectly inelastic up to some "choke" price p*-a price so high that nothing is bought-so that the demand curve is vertical at Q* at prices below p* and horizontal at p\ If p* and Q* vary across countries, what does the world's demand curve look like? Discuss how the elasticity of demand varies with the price along the world's demand curve. Assuming many countries, the world's demand curve for wheat can best be described as A. upward sloping.
B. downward sloping.
C. horizontal.
D. vertical.
E. undefined.
Elasticity along the world's demand curve for wheat
A. will be constant.
B. will always be elastic.
C. will always be perfectly inelastic.
D. will increase with price.
E. will decrease with price.