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
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.
Question : If the price elasticity of demand for a good is greater than 1, the demand is:
Question : The demand for a good is said to be inelastic when the price elasticity of demand is:
Question : When the price elasticity of demand is greater than 1, the demand is:
Question : The price elasticity of demand for a perfectly elastic demand curve is:
Question : The price elasticity of demand is perfectly inelastic when it is:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile