ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If a demand curve is perfectly vertical (up and down) then we say it is perfectly inelastic.

Detailed explanation-2: -Inelastic demand in economics occurs when the demand for a product doesn’t change as much as the price. A steep demand curve graphically represents inelastic demand. The steeper the curve, the more inelastic the demand for that product or service is.

Detailed explanation-3: -If demand is perfectly inelastic, the price elasticity of demand is 0, in which case the slope of the demand curve is infinite (or undefined). In this case, the demand curve is vertical. If demand is perfectly elastic, the price elasticity is infinite, in which case the slope of the demand curve is 0.

Detailed explanation-4: -A demand curve for a product with low elasticity appears to be steeper, because the quantity demanded doesn’t change much, even if prices do. Products with low price elasticity are described as being inelastic. Products with high price elasticity are generally non-staple goods.

Detailed explanation-5: -Inelastic demand curve The demand curve for items that are less elastic or inelastic is steeper (closer to the vertical axis).