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In which case is the price elasticity of demand equal to zero?
  • a)
    Unit elastic demand
  • b)
    Perfectly inelastic demand
  • c)
    Elastic demand
  • d)
    Perfectly elastic demand
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In which case is the price elasticity of demand equal to zero?a) Unit ...
Perfectly inelastic demand occurs when the quantity demanded does not change regardless of price changes, resulting in a price elasticity of demand equal to zero. This scenario is typically seen with essential goods that consumers will buy regardless of price.
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