Which of the following is the most price inelastic demand?
A) -0.01
B) -1
C) -5
D) -0.4

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. A demand is considered perfectly inelastic when the elasticity is 0, meaning quantity demanded does not change at all with a change in price. The closer the elasticity is to 0 (whether negative or positive), the more inelastic the demand. Among the given options, -0.01 is closest to 0, indicating the most price inelastic demand.

Which of the Following Is the Most Price Inelastic Demand