If a good has a price elasticity of demand equal to 0,________.
A) the percentage change in the quantity demanded of the good will be greater than the percentage change in its price
B) the demand curve for the good will be upward-sloping
C) the smallest increase in its price will cause consumers to stop consuming it completely
D) the quantity demanded of the good will be completely unaffected by a change in its price

Question

Quizplus · Accepted Answer

If a good has a price elasticity of demand equal to 0, it means that the quantity demanded of the good will be completely unaffected by a change in its price. This is because the demand for the good is completely inelastic, meaning that consumers are not responsive to changes in price. Even if the price were to increase significantly, consumers would still demand the same amount of the good.

If a Good Has a Price Elasticity of Demand Equal