A perfectly inelastic demand:
A)means people will not respond to any change in price.
B)means people will respond to any change in price.
C)means demand will drop to zero if the price changes by any amount.
D)is demonstrated by a perfectly horizontal demand curve.

Question

Quizplus · Accepted Answer

A perfectly inelastic demand means that the quantity demanded does not respond to any change in price. This could occur if the good is a necessity or if there are no substitutes available. As a result, consumers are willing to pay any price to obtain the good, so the demand curve is vertical.

A Perfectly Inelastic Demand