Perfectly inelastic demand means that consumers
A) are willing to buy any quantity of the good at a given price, but none at higher prices.
B) decrease their consumption as price rises.
C) increase their consumption as price rises.
D) will buy a certain quantity, regardless of price.
E) will buy a huge, almost infinite amount more, if the price falls just a little.

Question

Quizplus · Accepted Answer

Perfectly inelastic demand means that consumers will buy a certain quantity, regardless of price. This is because the good is a necessity, addictive or has no close substitutes. The quantity demanded remains the same regardless of how much the price changes.

Perfectly Inelastic Demand Means That Consumers