Advertisements
Advertisements
Question
With the help of a diagram define perfectly elastic demand.
Advertisements
Solution
The demand curve runs parallel to the x-axis. A little change in price results in an indefinitely huge change in the quantity needed. The demand curve represents completely elastic demand for the commodity.

APPEARS IN
RELATED QUESTIONS
With the help of a graph explain a perfectly inelastic demand curve.
Degrees of price elasticity of demand is of ______ types.
Which of the following goods have inelastic demand?
Identify elastic demand when value of Ed is ______.
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Bicycles
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Rice in West Bengal
Mention the degree of price elasticity of demand for the following goods:
Cosmetics
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
Indicate the degree of elasticity demand of the following demand curves.

How do we determine whether the demand for a particular commodity is elastic or inelastic?
