If the demand for a good is perfectly inelastic, then
A)the percentage change in quantity demanded is greater than the percentage change in price.
B)the percentage change in quantity demanded is less than the percentage change in price.
C)the percentage change in quantity demanded is equal to the percentage change in price.
D)quantity demanded is extremely responsive to changes in price.
E)quantity demanded is not responsive to changes in price.

Question

Quizplus · Accepted Answer

When demand for a good is perfectly inelastic, it means that the quantity demanded does not change in response to a change in price. This is why option E is correct, as it states that quantity demanded is not responsive to changes in price.

If the Demand for a Good Is Perfectly Inelastic, Then