In the case of perfectly inelastic demand,
A)the change in quantity demanded equals the change in price.
B)the percentage change in quantity demanded equals the percentage change in price.
C)infinitely-large changes in quantity demanded result from very small changes in the price.
D)quantity demanded stays the same whenever price changes.

Question

Quizplus · Accepted Answer

In the case of perfectly inelastic demand, the quantity demanded stays the same regardless of changes in price. This means that even if the price changes by a large amount, the quantity demanded will not change. Therefore, option D is the correct answer. Options A, B, and C are incorrect because they suggest that there is some relationship between changes in price and changes in quantity demanded, which is not the case in a perfectly inelastic demand scenario.

In the Case of Perfectly Inelastic Demand