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.
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. |
