Question : Perfectly inelastic demand occurs when the price elasticity of demand is:
Option 1: 0
Option 2: 1
Option 3: Greater than 1
Option 4: Undefined
Answer (1)
19th Jan, 2024
Correct Answer: 0
Solution : The correct answer is (a) 0
Perfectly inelastic demand occurs when the price elasticity of demand is zero. This means that the quantity demanded does not change at all in response to a change in price. Regardless of how much the price changes, the quantity demanded remains constant.
Comments (0)
