When the price of oysters decreases 25%, quantity demanded is unchanged. The price elasticity of demand for oysters is
A) perfectly inelastic.
B) elastic.
C) inelastic.
D) unitary elastic.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. If the quantity demanded is unchanged despite a price decrease, it means consumers' demand does not respond to price changes, indicating perfectly inelastic demand.

When the Price of Oysters Decreases 25%, Quantity Demanded Is