If a good has an absolute price elasticity of 0, the demand for the good is
A) unit elastic.
B) inelastic.
C) perfectly inelastic.
D) elastic.

Question

Quizplus · Accepted Answer

If a good has an absolute price elasticity of 0, it means that there is no change in the quantity demanded even if there is a change in the price. This situation is called perfectly inelastic demand. Therefore, the best choice is (C) perfectly inelastic.

If a Good Has an Absolute Price Elasticity of 0