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Question
Compare inelastic demand with perfectly inelastic demand.
Solution
| Inelastic demand | Perfectly inelastic demand |
| When a large change in the price does not bring so much change in the demand, the demand is said to be inelastic. | When quantity demanded does not change at all as a result of change in price of the commodity, demand of that commodity is said to be perfectly inelastic. |
| The slope of the inelastic demand curve is steep. | The demand curve is parallel to Y-axis. |
| Elasticity of demand is less than one. | Elasticity of demand is zero. |
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