Multiple Choice
The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
-If the demand for a good is perfectly inelastic, then:
A) the value of price elasticity of demand of the good is equal to 1.
B) the value of price elasticity of demand of the good is equal to -1.
C) the demand curve of the good is nonexistent.
D) consumers are very responsive to a change in the price of the good.
E) quantity demanded does not change when price of the good changes.
Correct Answer:

Verified
Correct Answer:
Verified
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