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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 Inelastic Demand and Perfectly Elastic Demand.
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Answer

Perfectly Inelastic Demand:

  1. When a change in price brings no change in quantity demanded, then demand is said to be Perfectly Inelastic demand.
  2. The numerical co-efficient is zero (e = 0).
  3. The demand curve is vertical straight line parallel to Y-axis.

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Perfectly Elastic Demand:

  1. When a small change in price brings infinite change in the quantity demanded, then demand is said to be Perfectly Elastic demand.
  2. The numerical co-efficient is infinity (e = ∞).
  3. The demand curve is a horizontal straight line parallel to X-axis.

Image

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