Suppose the demand for rescue services in our national parks is perfectly inelastic.This fact would mean that a 31 percent increase in rescue fees leads to
A) a 31 percent decrease in the quantity demanded.
B) a 31 percent increase in demand.
C) a 31 percent decrease in demand.
D) no change in the quantity demanded.
E) a decrease in the quantity demanded to 0 rescues.

Question

Quizplus · Accepted Answer

In the case of perfectly inelastic demand, no matter how much the price of the rescue fees changes, there will be no change in the quantity demanded. Therefore, a 31 percent increase in the rescue fees would result in no change in the quantity demanded.

Suppose the Demand for Rescue Services in Our National Parks