PRC-3 · Chapter 11 · Question 15 of 57
What does a Price Elasticity of Demand (PED) value of exactly 0 imply?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Quantity demanded does not change at all when the price changes
Explanation
A PED of zero denotes perfectly inelastic demand; the demand curve is vertical, meaning consumers buy the exact same quantity regardless of price.
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