2019 · Q13
Zero price elasticity of demand means
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- Awhatever the change in price, there is absolutely no change in demand
- Bfor a small change in price, there is a small change in demand
- Cfor a small change in price, there is a large change in demand
- Dfor a large change in price, there is a small change in demand
Explanation
Price elasticity of demand measures the percentage change in quantity demanded for a percentage change in price. Zero elasticity means quantity demanded does not respond to price at all - the demand curve is vertical. Option A states this exactly; B describes inelastic (but non-zero) demand, C elastic demand, and D vaguely inelastic demand. So A.