Suppose diamonds have an absolute price elasticity of 0, the demand for the good is
A) unit elastic.
B) inelastic.
C) perfectly inelastic.
D) elastic.

Name: Suppose diamonds have an absolute price elasticity of 0, the demand for the good is A) unit elastic. B) inelastic. C) perfectly inelastic. D) elastic.
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Question

Quizplus · Accepted Answer

A price elasticity of 0 means that a change in price does not affect the quantity demanded at all. This is the definition of perfectly inelastic demand.

Suppose Diamonds Have an Absolute Price Elasticity of 0, the Demand