If the demand for table salt were perfectly inelastic at all prices, a decrease in supply would
A)increase the price and decrease the quantity demanded.
B)increase the price while not affecting the quantity demanded.
C)reduce the quantity demanded to zero no matter what the initial price.
D)have no effect on either price or quantity demanded.

Question

Quizplus · Accepted Answer

With perfectly inelastic demand, consumers are willing to pay the same price for the same amount of salt regardless of a change in supply. Therefore, a decrease in supply would result in an increase in price while not affecting the quantity demanded.

If the Demand for Table Salt Were Perfectly Inelastic at All