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If quantity demanded is completely unresponsive to changes in price, demand is:
  • a)
    Inelastic
  • b)
    Unit elastic
  • c)
    Elastic
  • d)
    Perfectly inelastic
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
If quantity demanded is completely unresponsive to changes in price, d...
Perfectly inelastic demand: The case where the quantity demanded is completely unresponsive to price and the price elasticity of demand equals zero.
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Most Upvoted Answer
If quantity demanded is completely unresponsive to changes in price, d...
Explanation:

  • Inelastic: When the change in price results in a relatively smaller change in quantity demanded, demand is said to be inelastic. In other words, when the percentage change in quantity demanded is less than the percentage change in price, the demand is inelastic.

  • Unit Elastic: When the percentage change in quantity demanded is equal to the percentage change in price, the demand is said to be unit elastic.

  • Elastic: When the percentage change in quantity demanded is greater than the percentage change in price, the demand is elastic.

  • Perfectly Inelastic: When the quantity demanded remains constant even though there is a change in price, demand is said to be perfectly inelastic.

  • In this case, since the quantity demanded is completely unresponsive to changes in price, demand is perfectly inelastic.


Therefore, the correct answer is option D, perfectly inelastic.
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If quantity demanded is completely unresponsive to changes in price, demand is:a)Inelasticb)Unit elasticc)Elasticd)Perfectly inelasticCorrect answer is option 'D'. Can you explain this answer?
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