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
Under what conditions does the supply of good exhibit unitary elasticity?
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:
Matchboxes
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Rice in West Bengal
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Rolex watches
Mention the degree of price elasticity of demand for the following goods:
Medicine
Indicate the degree of elasticity demand of the following demand curves.

The value of price elasticity of demand is 0.8. Is demand elastic or inelastic? Give reason.
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for personal computers
