ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Perfectly inelastic demand refers to the situation where there no change in quantity demanded even there is change in price of the goods, the the demand is said to be perfectly inelastic i.e. Ed = 0.

Detailed explanation-2: -Ed = 0: Demand is perfectly inelastic and quantity does not change even when there’s a change in price. The demand curve is vertical.

Detailed explanation-3: -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-4: -In perfectly elastic demand, a small rise in price results in fall in demand to zero, while a small fall in price causes increase in demand to infinity. In such a case, the demand is perfectly elastic or ep = 00. ADVERTISEMENTS: The degree of elasticity of demand helps in defining the shape and slope of a demand curve.

Detailed explanation-5: -If elasticity = 0, then it is said to be ‘perfectly’ inelastic, meaning its demand will remain unchanged at any price. There are probably no real-world examples of perfectly inelastic goods.