New Enroll in RBI Grade B New Batch - Starts on May 21

    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.

    Practice Next