- Price elasticity of demand (PED) measures the responsiveness of quantity demanded to a change in price. - PED = (% Change in Quantity Demanded) / (% Change in Price). - If PED = 0, the numerator (% Change in Quantity Demanded) must be 0, implying no change in quantity demanded.
Zero price elasticity of demand means
Asked in UPSC CAPF 2019 · Topic: Nature of Indian Economy (Developing Economy Characteristics)
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Answer: A. whatever the change in price, there is absolutely no change in demand
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