Asked by Amanda Sammons on Jul 17, 2024

verifed

Verified

When the price of fresh fish increases 10%, quantity demanded is unchanged. The price elasticity of demand for fresh fish is

A) perfectly inelastic.
B) elastic.
C) inelastic.
D) unitary elastic.

Perfectly Inelastic

This describes a situation in economics where the demand or supply for a good is completely unresponsive to changes in price.

Fresh Fish

Refers to fish that have been recently caught and have not been frozen or preserved, ensuring maximum freshness and quality.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

  • Apprehend the idea and outcomes of perfectly inelastic and perfectly elastic demand.
verifed

Verified Answer

PS
Philo SultanJul 20, 2024
Final Answer :
A
Explanation :
The price elasticity of demand measures how much the quantity demanded of a good responds to a change in its price. If the quantity demanded remains unchanged despite a price increase, it means consumers' demand does not respond to price changes, indicating perfectly inelastic demand.