When e = 0, elasticity of demand is :

CA Foundation · Business Economics · MTP · September 2025
When e = 0, elasticity of demand is :
(A) A. Perfectly elastic
(B) B. Unitary
(C) C. Inelastic
(D) D. Perfectly inelastic demand

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Perfectly inelastic demand

Topics: Theory of Demand and Supply

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