What is meant by perfectly inelastic demand and perfectly elastic demand? Explain with suitable examples?

Dear student,

When quantity demanded is very responsive to a change in price we say demand is elastic, for example with increase in price of any uncommon product the demand will fall.
when quantity demanded is not very responsive to a change, we say that demand is inelastic. For example, the items of daily need say food, the demand for good does not change much even in case of increase in price.



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