In an extreme hypothetical instance in which the price change of a good elicited no change in quantity demanded, we would say that the item is
A) perfectly elastic.
B) perfectly inelastic.
C) infinitely elastic.
D) unitary elastic.

Question

Quizplus · Accepted Answer

In this hypothetical scenario, the quantity demanded remains constant even if there is a change in price. This is only possible when the good is considered perfectly inelastic. Perfectly inelastic demand occurs when the quantity demanded remains unchanged no matter how much the price changes. This could be seen in the case of necessities such as prescription medication, food, or gasoline.

In an Extreme Hypothetical Instance in Which the Price Change