Suppose the price change of a good causes no change in quantity demanded, we would say that the item is
A) perfectly elastic.
B) perfectly inelastic.
C) infinitely elastic.
D) unitary elastic.

Question

Quizplus · Accepted Answer

If the change in price results in no change in quantity demanded, it indicates that demand is completely insensitive to changes in price, making it perfectly inelastic. This means that consumers will buy the same amount of the good irrespective of its price.

Suppose the Price Change of a Good Causes No Change