Question

When the demand remains the same with changes in its price, what will be the elasticity of demand and shape of the demand curve?

Answer 1

The elasticity of demand is zero when the quantity of a good that is wanted does not change in response to a change in price. In this instance, regardless of changes in the commodity's price, the quantity demanded stays constant. The same amount is sought regardless of the price. This is an instance of demand that is perfectly inelastic. Perfectly or totally inelastic demand curves are those with zero elasticity. Fig. provides an illustration of this. Perfectly inelastic demand curve D₁ is a vertical straight line demand curve parallel to the Y-axis. Whether the price is OP or OP₁, the quantity bought stays OQ. Even when it comes to basic requirements like food, there are relatively few instances of perfectly inelastic demand because price fluctuations can affect demand for these items. The demand for life-saving medications, on the other hand, is completely inelastic.