Question

If there is no change in the demand for commodity X, even after a rise in its price, then its demand is ______

Options

• perfectly elastic

• perfectly inelastic

• less elastic

• highly elastic

Answer 1

If there is no change in the demand for commodity X, even after a rise in its price, then its demand is perfectly inelastic.

Explanation:

When a change in price has no effect on demand, this is referred to as perfectly inelastic demand. The demand curve in this case is a straight line parallel to the Y-axis.