Suppose that a 5% rise in the price of apples does not cause the quantity demanded to change.The elasticity of demand for apples would then be:

Question

Quizplus · Accepted Answer

If the quantity demanded does not change with a 5% rise in price, it means the demand is perfectly inelastic, which is represented by an elasticity of 0. This indicates that the consumers are not sensitive to the change in price and will continue to buy apples at the same quantity regardless of the price change.

Suppose That a 5% Rise in the Price of Apples