Question

If a small increase in the price of a good reduces quantity demanded to zero,​

Answer 1

Explanation:

We can measure demand elasticity of demand on a scale of 0 to 1 and greater than 1. If the price elasticity of demand is equal to zero then the demand is perfectly inelastic. ... If the quantity demanded for a good increases by 20% in response to 15% decrease in price, the price elasticity of demand would be 20%/15% = 1.3