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

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 slope of the demand curve is straight line parallel to Y-axis.
   
   

1. Example : life saving drugs, salt, etc

Relatively Inelastic Demand:

1. When percentage change in quantity demanded is less than percentage change in price then, demand is said to be Relatively Inelastic demand.
2. The numerical co-efficient is less than one (e < 1).
3. The slope of the demand curve is steeper.
   
   

1. Example: food grains