ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When the demand of a quantity does not change as a result of a change in the price of a commodity, the demand of that commodity is called a perfectly inelastic demand. In this case, the elasticity of demand is zero.

Detailed explanation-2: -When a good has an elasticity of zero it is called “perfectly” inelastic. This means that the supply and/or demand of the product will not change at all even as its price changes.

Detailed explanation-3: –the case where the quantity demanded is completely unresponsive to price, and the price elasticity of demand equals zero.

Detailed explanation-4: -Perfectly inelastic demand means that the change in quantity is zero for any percentage change in price; the demand curve in this case is vertical. Price inelastic demand means only that the percentage change in quantity is less than the percentage change in price, not that the change in quantity is zero.

Detailed explanation-5: -Perfectly Inelastic Demand means that there is no change in the quantity of the product demanded when the price changes. This means that the supplier can charge whatever price they want and people will still be willing to buy that product.