If demand is perfectly inelastic,
A)then a 1% increase in price leads to a fall in quantity of greater than 1%.
B)then a 1% increase in price leads to a fall in quantity of less than 1%.
C)then a 1% increase in prices then quantity demanded falls to zero.
D)then a 1% increase in price has no effect on quantity demanded.

Question

Quizplus · Accepted Answer

If demand is perfectly inelastic, it means that no matter how much the price increases, the quantity demanded will not change. Therefore, a 1% increase in price will have no effect on quantity demanded.

If Demand Is Perfectly Inelastic