ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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perfectly inelastic demand
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perfectly inelastic supply
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perfectly elastic demand
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perfectly elastic supply
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Detailed explanation-1: -If elasticity equals zero, demand is perfectly inelastic, which means that an increase in price does not affect the quantity required.
Detailed explanation-2: -If a good’s price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic.
Detailed explanation-3: -When a good has an elasticity of zero it is called “perfectly” inelastic. This means that the supply and/or demand of the product will not change at all even as its price changes.
Detailed explanation-4: -E = 0: demand is perfectly inelastic, meaning that demand does not change at all when the price changes.
Detailed explanation-5: -Perfectly inelastic demand is an economic condition in which a change in the price of a product or a service has no impact on the quantity demanded or supplied because the elasticity of demand or supply is equal to zero.