What is meant by inelastic demand ? Compare it with perfectly inelasti

1.	What is meant by inelastic demand ? Compare it with perfectly inelastic demand.
Answer» When percentage change in quantity demanded is less than percentage change in price, demand is said to be inelastic. 1½ Whereas, when quantity demanded does not change at all, in response to a given change in price of the commodity, the demand is said to be perfectly inelastic. Detailed Answer : Inelastic Demand (Ed < 1) : It is also called less than unitary elastic demand. When percentage change in quantity demanded is less than the percentage change in price the demand is said to be inelastic. The demand of goods is called perfectly inelastic. When with the change in the price there is no change in demand for the goods. Thus, when change in price produces no change in demand then such a demand is called perfectly inelastic demand. In this situation demand curve is a straight line parallel to the Y-axis.

What is meant by inelastic demand ? Compare it with perfectly inelastic demand.

Answer»

When percentage change in quantity demanded is less than percentage change in price, demand is said to be inelastic. 1½ Whereas, when quantity demanded does not change at all, in response to a given change in price of the commodity, the demand is said to be perfectly inelastic.

Detailed Answer :

Inelastic Demand (Ed < 1) : It is also called less than unitary elastic demand. When percentage change in quantity demanded is less than the percentage change in price the demand is said to be inelastic. The demand of goods is called perfectly inelastic. When with the change in the price there is no change in demand for the goods. Thus, when change in price produces no change in demand then such a demand is called perfectly inelastic demand. In this situation demand curve is a straight line parallel to the Y-axis.

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