Discuss (a)Perfectly in elastics demand,(b)Perfectly elastics demand.
Answers
Answer:
(a) Perfectly Inelastic Demand
In case of perfectly inelastic demand, the demand of a commodity doesn't change due to change in its price.
eg: If the price of matchbox increases, then the demand for matchbox remains same as earlier(due to very low price). It means that degree of responsiveness of quantity demand is equal to 0.
(b) Perfectly Elastic Demand
In case of perfectly elastic demand, a negligible change in price leads to greater change in quantity demanded.
eg: Cement , coal or brick Industry supplying identical product. If any of the producer increase the price than demand will become zero as there are many other suppliers.
Answer:
body which regains its original configuration immediately and completely after the removal of deforming force from it is called perfectly elastic body. Quartz and phosphor bronze are the examples of nearly perfectly elastic bodies.