Figure 6-5
-If a demand curve for a good is perfectly inelastic, then the seller could
A)increase price and not change the number of units purchased.
B)ignore the effects of costs on its profits.
C)rely on buyers to look for other products if it increases price.
D)sell more units by advertising.

Question

Figure 6-5 
-If a demand curve for a good is perfectly inelastic, then the seller could
A)increase price and not change the number of units purchased. 
B)ignore the effects of costs on its profits. 
C)rely on buyers to look for other products if it increases price. 
D)sell more units by advertising.

Quizplus · Accepted Answer

If the demand curve for a good is perfectly inelastic, it means that the quantity demanded will not change even if the price changes. Therefore, the seller can raise the price and still sell the same number of units, increasing their profits.

Figure 6-5 -If a Demand Curve for a Good Is Perfectly Inelastic