Question

If quantity demand is completely urresponsive to changes in price demand is

Answer 1

Answer :

If quantity demanded is completely unresponsive to change in price, then demand is perfectly inelastic.

Explanation :

This is a situation when there is no change in the quantity demanded with the change of price. Demand for such a commodity is said to be perfectly inelastic.

In this case, Ed ( Elasticity of demand ) is equal to 0. i.e. Ed = 0.

Given below is a shedule ( or tabular example ) of perfectly inelastic demand.

$\boxed{ \begin{array}{c|c}\sf Price(in\;Rs.) &\sf Demand ( in \: units)\\\\20&100 \\30&100\\40&100\\50&100\end{array}}$

Here, as we can see that price of a commodity is changing but quantity demanded is fixed at 100. or we can say that quantity demanded is totally unresponsive to the change in price. Changing of price is not capable of changing the demanded quantity.

Demand curve in such a case is a vertical straight line parallel to y-axis.