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NECO Economics 2023 Objective — Question 7

Question 7 of 50 from the National Examinations Council (NECO) Economics 2023 Objective paper, with the correct answer and a full explanation.

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If the demand for a commodity remains constant as price increases, the commodity is said to be A. price elastic B. unit price elastic C. price inelastic D. perfectly price inelastic

  • A. price elastic
  • B. unit price elastic
  • C. price inelastic
  • D. perfectly price inelasticCorrect

Explanation

Demand is perfectly (completely) inelastic when quantity demanded stays constant regardless of price changes; elasticity equals zero, shown as a vertical demand curve (as in the diagram, ED = 0).

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