Q.5. Distinguish between Perfectly elastic demand and perfectly inelastic demand

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter 3 - (B) ELASTICITY OF DEMAND [Latest edition]

Q.5. Distinguish between

Perfectly elastic demand and perfectly inelastic demand.

Perfectly elastic demand	Perfectly inelastic demand
It implies that the demand is infinitely responsive to any change in the price of the good.	It implies that the demand is completely unresponsive to any change in the price of the good.
The perfectly elastic demand curve is parallel to the OX axis.	The perfectly elastic demand curve is parallel to the OY axis.
Symbolically it is represented as  Ed = ∞	Symbolically it is represented as Ed = 0
For example- 10% fall in price may lead to an infinite rise in demand.	For example- 20% fall in price will have no effect on quantity demanded.