If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded does not change, this indicates that, if other things are unchanged, the price elasticity of demand is:
A) 0.
B) -0.5.
C) -1.
D) -2.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. If the quantity demanded does not change when the price changes, it indicates that the demand is perfectly inelastic, which is represented by an elasticity of 0.

If the Price of Chocolate-Covered Peanuts Decreases from $1