Your Answer:
Perfectly inelastic demand suggests that any price can be
charged for a good and consumers will still buy it. However, no matter how much
a good is desired and/or needed, the price charged for that good cannot be
changed without affecting the purchasing pattern of the consumers who desire
it. Even a good necessary to maintain life cannot be priced beyond a certain
level or consumers will simply seek a substitute good or other options.
Source: Heyne, Boettke, and Prychitko, The Economic Way of
Thinking, 11/e, Pearson
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