6. Distinguish between Perfectly elastic demand and Perfectly inelastic demand. Draw diagrams also.
Dear student
In perfectly elastic demand, price is independent of quantity demanded, i.e. price is constant. With a slight change in price, quantity demanded changes. The elasticity of demand is infinity.
In perfectly inelastic demand, quantity demanded is independent of price , i.e. quantity demanded is constant. With a slight change in price, quantity demanded does not change. The elasticity of demand is zero.
Regards
In perfectly elastic demand, price is independent of quantity demanded, i.e. price is constant. With a slight change in price, quantity demanded changes. The elasticity of demand is infinity.
In perfectly inelastic demand, quantity demanded is independent of price , i.e. quantity demanded is constant. With a slight change in price, quantity demanded does not change. The elasticity of demand is zero.
Regards