What is meant by inelastic demand? Compare it with perfectly inelastic demand.

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Solution

The more responsive the demand for a good is to its price, the higher is the price- elasticity of demand for the good. If at some price, the percentage change in demand for a good is less than the percentage change in the price, then demand for the good is said to be inelastic at that price.
In perfectly inelastic demand, price change never leads to a change in the demand. Therefore, a vertical demand curve is perfectly inelastic. Whatever be the price, the demand remains constant.

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Similar questions

If the demand for bread is ___________, a decrease in its price will lead to a fall in consumers’ total expenditure on bread.

(1) unitary elastic

(2)perfectly inelastic

(3) elastic

(4) inelastic

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