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B Elasticity of Demand — Economics STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsEconomicsB Elasticity of Demand2 Marks
Question
Perfectly elastic demand and Perfectly inelastic demand.
✓

Answer

Perfectly elastic demand :
  1. When a small change in price brings an infinite change in quantity demanded, then demand is said to be Perfectly Elastic demand.
  2. The numerical value of Perfectly Elastic demand is infinite i.e. e = ∞
  3. The demand curve is horizontal straight line parallel to X-axis.
  4. Such a demand is a myth or theoretical.
https://pg-data.sgp1.digitaloceanspaces.com/chapter_wise/16403/Q14.png" alt="Image" width="231" height="" />Perfectly inelastic demand.
  1. When a change in price does not bring any change in quantity demanded, then demand
    is said to be Perfectly Inelastic demand.
  2. The numerical value of Perfectly Inelastic demand is zero i.e. e = 0.
  3. The demand curve is a vertical straight line parallel to Y—axis.
  4. Such demand is found in case of life saving drugs, salt, etc.
 https://pg-data.sgp1.digitaloceanspaces.com/chapter_wise/16403/Q15.png" alt="Image" width="269" height="" />

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