When the price elasticity of demand is ________, demand for the good is perfectly inelastic.
A)equal to infinity
B)greater than 1
C)equal to 1
D)between 1 and zero
E)equal to zero

Question

Quizplus · Accepted Answer

When the price elasticity of demand is equal to zero, it means that there is no change in the quantity demanded of a good when there is a change in its price. This indicates perfect inelasticity, which means that the demand for the good is not affected by price changes.

When the Price Elasticity of Demand Is ________, Demand for the Good