A price increase from $50 to $60 that causes no change in the quantity demanded of a good indicates that demand for the product is
A) relatively elastic.
B) relatively inelastic.
C) infinitely elastic.
D) perfectly inelastic.
E) unit elastic.

Question

Quizplus · Accepted Answer

A price increase that causes no change in quantity demanded indicates a perfectly inelastic demand. In other words, consumers are willing to pay the higher price, even if it is significantly more expensive.

A Price Increase from $50 to $60 That Causes No