What does a PED value of 0 indicate?

A Price Elasticity of Demand (PED) value of 0 signifies perfectly inelastic demand, which means that the quantity demanded does not change regardless of any change in price. In practical terms, consumers will continue to buy the same quantity of a good or service even if its price increases or decreases. This scenario is often depicted in markets for essential goods or services, such as life-saving medications, where consumers have no substitutes and require the product regardless of the price.

To further clarify the context regarding other options: a PED greater than 1 indicates elastic demand, where consumers are sensitive to price changes; a PED of 1 indicates unitary elasticity, where the percentage change in quantity demanded is equal to the percentage change in price; and a PED approaching infinity shows perfectly elastic demand, where consumers will only buy at a specific price and no other. Thus, the distinction of a PED value of 0 specifically aligns with perfectly inelastic demand.