Demand is said to be perfectly inelastic when:
A) the demand curve is horizontal.
B) the elasticity of demand is infinite.
C) the elasticity of demand is zero.
D) consumers are highly responsive to change in the price of a good.

Question

Quizplus · Accepted Answer

Perfectly inelastic demand means that a change in price will not result in any change in the quantity demanded. This implies that the elasticity of demand is zero because the percentage change in quantity demanded is zero for any percentage change in price.

Demand Is Said to Be Perfectly Inelastic When