Examples of perfect elastic demand and supply, and inelastic demand and supply
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Explanation:
- Perfect elastic demand is just a hypothetical situation in which a negligible change in price leads to infinite change in demand. As it is an imaginary situation, there is no real example for it.
- Perfectly inelastic demand is the one in which the change in price does not affect the demand at all. For example: Salt. Even when the price rises or falls our consumption of salt remains the same. I hope that helps you.
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Elasticity of demand refers to the change in demand when there is a change in another factor, such as price or income. If demand for a good or service is static even when the price changes, demand is said to be inelastic. Examples of elastic goods include luxury items and certain food and beverages. HOPE THIS HELPS YOU MATE!!
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