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Questions
When is the demand for a commodity said to be perfectly inelastic?
What do you mean by perfectly inelastic demand?
Solution
When quantity demanded of a good does not change at all in response to change in its price, it is called perfectly inelastic demand.
RELATED QUESTIONS
Identify the type of goods having price elasticity of demand greater than 1:
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity which is ______.
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | A. | Ed = 0 |
| (ii) | Perfectly inelastic demand | B. | Ed = ∞ |
| (iii) | Relatively elastic demand | C. | Ed < 1 |
| (iv) | Relatively inelastic demand | D. | Ed > 1 |
Draw a diagram showing a perfectly elastic demand curve.
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
What is price elasticity of demand for life saving drugs?
Why is market demand curve more elastic than an individual demand curve?
Indicate the degree of elasticity of demand of the following demand curve.
Indicate the degree of elasticity of demand of the following demand curve.
What is the price elasticity of demand for the following demand curve:
Rectangular hyperbola.
