Asked by
Jonari Carroll
on Nov 17, 2024
Verified
If demand is perfectly inelastic, the demand curve is vertical, and the price elasticity of demand equals 0.
Perfectly Inelastic
A situation where demand or supply does not change in response to a change in price.
Demand Curve
A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at different prices.
Price Elasticity
The measure of how much the quantity demanded or supplied of a good changes in response to a change in its price. It reflects the sensitivity of consumers or producers to price changes.
- Gain insight into the notion of price elasticity of demand and the techniques for its calculation.
- Distinguish between inelastic and elastic demand.
Verified Answer
JP
Learning Objectives
- Gain insight into the notion of price elasticity of demand and the techniques for its calculation.
- Distinguish between inelastic and elastic demand.