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When Is Demand Perfectly Elastic? When Is Demand Perfectly Inelastic

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Essay

When is demand perfectly elastic? When is demand perfectly inelastic? What are the values of the price elasticity of demand when demand is perfectly elastic or perfectly inelastic? What do perfectly elastic and perfectly inelastic demand curves look like?


Definitions:

Equilibrium Level

The state at which market supply and demand balance each other, resulting in stable prices and quantities.

Surplus

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price.

Equilibrium Level

The state of balance where market forces such as supply and demand are equal, often used in the context of prices and quantities in markets.

Equilibrium

Equilibrium is the state in an economy or market where supply equals demand, resulting in stable prices.

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