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SSC Micro Macro Economics P-I QUESTION #1679
Question 1
For a person who has never consumed cigarettes, the price elasticity of demand for cigarettes would best be described as:
  • Unitary price elastic
  • Relatively price inelastic
  • Perfectly price elastic
  • Perfectly price inelastic✔️
Correct Answer Explanation
A non-smoker assigns zero value to cigarettes — no quantity would be demanded regardless of the price. Perfectly price inelastic demand (\(P_e = 0\)) means the quantity demanded does not change at all with price changes, represented by a vertical demand curve. This contrasts with a heavy smoker, whose demand would be relatively inelastic (but not perfectly so), and a casual smoker whose demand may be more responsive.