Q37
If quantity demanded is completely unresponsive to changes in price, demand is
A.
Inelastic
B.
Unit elastic
C.
Elastic
D.
Perfectly inelastic
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
If quantity demanded is completely unresponsive to changes in price, demand is Perfectly inelastic. Perfectly inelastic demand means that quantity demanded remains the same when price increases or decreases. Consumers are completely unresponsive to changes in price.