When the demand for a product is said to be perfectly inelastic, it implies that:
A) the sales of the product are very sensitive to changes in price.
B) the demand curve for the product is relatively flat.
C) the profit per-unit increases with an increase in price.
D) with a change in price, change in quantity demanded is zero.
E) as price increases, the quantity demanded increases.

Question

Quizplus · Accepted Answer

When demand for a product is perfectly inelastic, it means that the quantity demanded remains constant regardless of changes in price. In other words, the change in price has no effect on the quantity demanded. This can be represented graphically with a vertical demand curve, indicating that there is no change in quantity demanded as price changes. Therefore, the correct answer is D.

When the Demand for a Product Is Said to Be