ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied. Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Detailed explanation-2: -Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded (or supplied) divided by the percentage change in price.

Detailed explanation-3: -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-4: -Supply is price elastic when the percentage change in quantity supplied is greater than the percentage change in price, and supply is price inelastic when the percentage change in quantity supplied is less than the percentage change in price.

Detailed explanation-5: -An inelastic demand is one in which the change in quantity demanded due to a change in price is small.