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In perfectly inelastic demand, what happens to the quantity demanded if price changes?

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Question

In perfectly inelastic demand, what happens to the quantity demanded if price changes?

Options

  • Increases

  • Decreases

  • Stays the same

  • Becomes zero

MCQ
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Solution

Stays the same

Explanation: 

With perfectly inelastic demand, quantity demanded always remains fixed, even if the price goes up or down.

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