passwella.
Menu

JAMB Economics 1989 Question 10

Question 10

Elasticity

If, as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is

  1. A.static
  2. B.infinitely elastic
  3. C.externally determined
  4. D.perfectly inelastic.
Show the answer and explanation

Answer: D (perfectly inelastic.)

Explanation

If quantity demanded does not change at all when price changes, elasticity is zero: demand is perfectly inelastic.