What happens in the case of perfectly inelastic demand
A)The change in quantity demanded will be twice the change in price.
B)Huge changes in quantity demanded result from very small changes in the price.
C)The change in quantity demanded exactly equals the change in price.
D)Quantity demanded does not change for any change in price.

Question

Quizplus · Accepted Answer

In the case of perfectly inelastic demand, the quantity demanded does not change for any change in price. This means that the demand curve is vertical, indicating that consumers are willing to pay a fixed amount for the product regardless of its price. Examples of goods with perfectly inelastic demand include life-saving medicines or certain types of fuel where consumers have no other options but to purchase the product at its current price.

What Happens in the Case of Perfectly Inelastic Demand