Demand is perfectly inelastic if elasticity is:
A)less than one
B)equal to one
C)greater than one
D)equal to zero

Question

Quizplus · Accepted Answer

Demand is perfectly inelastic if elasticity is equal to zero. This means that even if the price of the good or service increases, the quantity demanded remains unchanged. Alternatively, if the price decreases, the quantity demanded will also remain unchanged. It is said to be "perfectly" inelastic because there is absolutely no change in quantity demanded with respect to changes in price.

Demand Is Perfectly Inelastic If Elasticity Is