The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-If the demand for a good is perfectly inelastic, then:
A)the value of price elasticity of demand of the good is equal to 1.
B)the value of price elasticity of demand of the good is equal to -1.
C)the demand curve of the good is nonexistent.
D)consumers are very responsive to a change in the price of the good.
E)quantity demanded does not change when price of the good changes.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-If the demand for a good is perfectly inelastic, then:
A)the value of price elasticity of demand of the good is equal to 1. 
B)the value of price elasticity of demand of the good is equal to -1. 
C)the demand curve of the good is nonexistent. 
D)consumers are very responsive to a change in the price of the good. 
E)quantity demanded does not change when price of the good changes.

Quizplus · Accepted Answer

If the demand for a good is perfectly inelastic, it means that quantity demanded does not change when the price of the good changes. This is because consumers are not responsive to a change in the price of the good. The value of price elasticity of demand of the good is equal to 0 in this case. Therefore, the correct choice is E.

The Figure Given Below Shows the Demand Curves for Five