PRC-3 · Chapter 11 · Question 29 of 57
An individual requires a specific life-saving medication. Even if the price triples, they must buy the exact same dosage every month. What is the Price Elasticity of Demand (PED) for this patient?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Exactly 0 (Perfectly inelastic)
Explanation
When quantity demanded remains totally unchanged regardless of price fluctuations, the demand is perfectly inelastic, carrying a PED value of zero.
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