If the price of salt increases and the quantity demanded does not change, then
A) the price elasticity of demand is equal to zero.
B) demand is perfectly inelastic.
C) the demand curve for salt is horizontal.
D) Both A and B are correct.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. If the quantity demanded does not change when the price changes, it means the demand is perfectly inelastic, which is represented by a price elasticity of demand equal to zero. Therefore, both A and B are correct descriptions of this scenario.

If the Price of Salt Increases and the Quantity Demanded