The price of furnace filters increased by 5 percent and the quantity demanded did not change.The price elasticity of demand for furnace filters is
A) perfectly inelastic.
B) inelastic.
C) elastic.
D) unit elastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. If the quantity demanded does not change when the price changes, the demand is considered perfectly inelastic, which means consumers' purchase quantity does not vary as the price changes.

The Price of Furnace Filters Increased by 5 Percent and the Quantity