Perfectly inelastic demand means that consumers
A) will buy a certain quantity, regardless of price.
B) decrease their consumption as price rises.
C) will buy a huge, almost infinite amount more, if the price falls just a little.
D) increase their consumption as price rises.
E) are willing to buy any quantity of the good at a given price, but none at higher prices.

Question

Quizplus · Accepted Answer

Perfectly inelastic demand means that consumers will buy a certain quantity regardless of the price. This means that the quantity demanded does not change in response to changes in price. In other words, if the price of the good increases, consumers will still buy the same quantity of the good as before. Conversely, if the price of the good decreases, consumers will still buy the same quantity of the good as before. Therefore, the answer is A.

Perfectly Inelastic Demand Means That Consumers