Economics 12 Notes for Economics Notes

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Perfectly inelastic demand

If there is no change in quantity demand due to the certain percentage change in price is called perfectly inelastic demand.

perfectly inelastic demand

In the above fig, when price is OP quantity demand is OQ. When price decreases to Po then demand is constant or same. When the price increases to P1 then the demand is again same. This shows when increases or decreases quantity demand remains same.

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