Demand is perfectly inelastic when
A) the good in question has perfect substitutes.
B) shifts of the supply curve result in no change in price.
C) shifts of the supply curve result in no change in quantity demanded.
D) shifts of the supply curve result in no change in the total revenue from sales.

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, changes in price (which can be caused by shifts in the supply curve) do not affect the quantity demanded. This means consumers will buy the same amount regardless of price changes.

Demand Is Perfectly Inelastic When