What is perfectly inelastic demand?
Understand the Problem
The question is asking for an explanation of the economic concept of perfectly inelastic demand, which refers to a situation where the quantity demanded of a good does not change regardless of changes in its price.
Answer
Perfectly inelastic demand occurs when price changes have no effect on the quantity demanded, with elasticity equal to zero.
Perfectly inelastic demand occurs when a change in the price of a product or service has no impact on the quantity demanded or supplied because the elasticity of demand or supply is equal to zero.
Answer for screen readers
Perfectly inelastic demand occurs when a change in the price of a product or service has no impact on the quantity demanded or supplied because the elasticity of demand or supply is equal to zero.
More Information
Perfectly inelastic demand typically applies to necessary goods or services that have no close substitutes, such as life-saving medications or utilities.
Sources
- What is Perfectly Inelastic Demand? | Products, Example, Solution - carboncollective.co
- Definition of Perfectly Inelastic Demand | Higher Rock Education - higherrockeducation.org
- What Is Inelastic? Definition, Calculation, and Examples of Goods - investopedia.com
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