Question

Rahul has a special taste
for college canteen is
hotdogs. The owner of the
canteen doubles the prices
of hotdogs. Rahuldid not
respond to the increase in
prices and kept on
demanding the same
quantity of hotdogs. His
demand for hotdogs is:

Answer 1

Answer:

The correct answer is perfectly inelastic

Answer 2

Answer:

The demand for Rahul is perfectly inelastic.

Explanation:

In this case, the demand for Rahul is perfectly inelastic because the increase in the price of hotdogs does not affect the demand for the product. In a perfectly elastic demand, the increase in the price of the product directly impacts the demand for the product. If the price of the product increases the demand for the product decrease. On the other hand if the price of the product fall then the demand for the product increases. But in the given situation the demand for the product does not affect by the increase in the price of the product.

Hence, in the given case the demand of Rahul is perfectly inelastic.

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