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Which of the following is true about perfectly inelastic demand?

A. Consumers are not responsive to any change in price.
B. The demand curve is perfectly vertical.
C. Consumers are highly responsive to changes in price.
D. The price elasticity of demand is greater than 1.



Answer :

GinnyAnswer

Final answer:

Perfectly inelastic demand means consumers are unresponsive to price changes, resulting in a vertical demand curve. Insulin's demand serves as an example of this phenomenon.


Explanation:

Perfectly inelastic demand refers to a situation where consumers are not responsive to any change in price. This results in a perfectly vertical demand curve, indicating that quantity demanded remains constant regardless of price changes. An example of this is insulin, where the quantity demanded for a diabetic remains the same even if the price changes.


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