Answer (B) is correct . When buyers have such a high need for a given product that they must pay whatever price sellers choose to charge and there are no suitable substitutes, demand is said to be perfectly inelastic. This is depicted graphically as a vertical line.
Answer (A) is incorrect because Demand is perfectly elastic when there are so many buyers and sellers for a product that none can influence the price. In such a market, all consumers can buy as much as they want as long as they offer the market price, and all suppliers can sell as much as they offer as long as they charge the market price. This is depicted graphically as a horizontal line. It is the opposite condition from that faced by buyers and sellers of diabetes drugs.
Answer (C) is incorrect because Relatively elastic demand means that a given percentage change in price will cause a greater percentage change in demand.
Answer (D) is incorrect because The demand for insulin is perfectly inelastic, not merely relatively inelastic.
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