ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A perfectly inelastic good would be one where demand does not change regardless of the price; however, no such good or service is perfectly inelastic.

Detailed explanation-2: -If a good’s price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic. If price elasticity is exactly 1 (price change leads to an equal percentage change in demand), it is known as unitary elasticity. The availability of a substitute for a product affects its elasticity.

Detailed explanation-3: -Answer and Explanation: A change in the price of a good does not shift the demand curve.

Detailed explanation-4: -In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be most elastic.

Detailed explanation-5: -Goods that are considered essential have a low elasticity of demand. Electricity, gas, oil, and water are all relatively inelastic because consumers rely on these as necessities rather than luxuries. Also, keep in mind that the price elasticity of demand is very time-sensitive.