Advertisements
Advertisements
Question
With the help of a graph explain a perfectly inelastic demand curve.
Advertisements
Solution
Perfectly Inelastic Demand: When the quantity demanded does not change at all as a result of a change in the price of the commodity, the demand for that commodity is said to be perfectly inelastic. In such a case, quantity demanded is independent of price changes.
Demand here is nonresponsive and the numerical value of price elasticity (Ed) will be zero. The demand curve will be parallel to the Y-axis as shown in Figure. In the figure, demand (OQ) is fixed. If price increases or decreases, it still remains unchanged. This type of situation is normally not found in real life.
APPEARS IN
RELATED QUESTIONS
Analyse the given graphs and identify the type of elasticity of demand of:
- Picture 1
- Picture 2
Degrees of price elasticity of demand is of ______ types.
In case of Ed = 0, demand curve is ______.
Demand is inelastic for ______.
Mention the degree of price elasticity of demand for the following goods:
Medicine
How do we determine whether the demand for a particular commodity is elastic or inelastic?
What is meant by unitary elastic demand?
What is the price elasticity of demand for the following demand curve?
Straight line demand curve parallel to X-axis.
A list of goods is given below. state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for school uniform
A list of goods is given below. state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for refrigerators
