Question

Statements that are incorrect in relation to perfectly inelastic demand:

1. Percentage change in price has no effect on quantity demanded
2. Co-efficient of elasticity is equal to 1 (ed=1).
3. Demand curve is a horizontal line parallel to X axis.
4. It is a type of price elasticity of demand.

Options

• a, b, c, d

• a, b, c

• b, c

• a, b

Answer 1

b, c