Asked by Stacey Floyd on Jun 11, 2024
Verified
Perfectly inelastic demand has an elasticity value of 1.
Elasticity Value
A measure in economics indicating how the quantity demanded or supplied of a good responds to changes in price or income.
Inelastic Demand
A situation in which the quantity demanded of a good or service changes by a relatively small amount in response to a change in its price.
- Understand the concept of price elasticity of demand.
Verified Answer
TC
Trent CurtisJun 14, 2024
Final Answer :
False
Explanation :
Perfectly inelastic demand has an elasticity value of 0, meaning quantity demanded does not change as price changes.
Learning Objectives
- Understand the concept of price elasticity of demand.