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      Question

      Which type of goods are described as having perfectly

      inelastic demand?
      A Goods for which a slight change in price leads to an infinite change in quantity demanded. Correct Answer Incorrect Answer
      B Goods for which a change in price leads to no change in quantity demanded. Correct Answer Incorrect Answer
      C Goods for which a change in price leads to a larger proportionate change in quantity demanded. Correct Answer Incorrect Answer
      D Goods for which a change in price leads to a smaller proportionate change in quantity demanded. Correct Answer Incorrect Answer
      E Goods for which the proportionate change in price results in an equal proportionate change in quantity demanded. Correct Answer Incorrect Answer

      Solution

      Perfectly inelastic demand means that a change in the price of a commodity does not affect the quantity demanded.

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