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.
Regards
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.
Regards