GENERAL KNOWLEDGE

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: -Inelastic demand is largely unresponsive to changes in price, so the demand will remain the same whether the price goes up or down. Inelastic demand is graphically represented by a steep demand curve. The steeper the curve, the more inelastic the demand for that product is.

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: -In case of perfectly inelastic demand the change in price will have no effect on the quantity demanded. The consumers do not change their demand due to the change in price. This usually is seen in case of necessities. Hence, the equilibrium quantity will be same the price might increase or decrease.

Detailed explanation-5: -Perfect inelasticity refers to a situation in which the quantity demanded does not change at all, regardless of the price. Perfect elasticity refers to a situation in which the quantity demanded is extremely sensitive to changes in price, with even a small change in price leading to a large change in quantity demanded.