If demand is perfectly inelastic, the price elasticity of demand is equal to
A) 1.
B) 0.
C) infinity.
D) a negative number between 0 and infinity.

Question

Quizplus · Accepted Answer

If demand is perfectly inelastic, it means that the quantity demanded remains the same regardless of changes in price. In such a case, the price elasticity of demand is zero, as there is no response of quantity demanded to changes in price.

If Demand Is Perfectly Inelastic, the Price Elasticity of Demand