If the price of a good increases by one thousandth of 1% and the quantity demanded goes to zero, then at that price, the good is
A)non-responsive.
B)inelastic.
C)perfectly inelastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

If the quantity demanded goes to zero with just a tiny increase in price, it means that consumers are extremely sensitive to price changes, indicating perfect elasticity.

If the Price of a Good Increases by One Thousandth