Economics

Very elastic: Large % change in L= Large %

Elasticity demanded change in Q.
Very inelastic: Large % change in P= Large %
change in Q.
10 A
9 B
8
7
6 C
Price

5 D Scenario Price Quantity ||

4 A 9 2
3 E
B 8 4
2 F
1 C 5.50 9
0
D 4.50 11
0 5 10 15 20
Quantity E 2 16
F 1 18

%
= %
 Perfect inelasticity

Price Quantity
Price

R1,00 100

R20,00 100

Quantity
R100,00 100

% Perfect inelasticity is seen when quantity does not change.

= %
This change is seen as =
0
= It is Vertical on a graph.
%

A consumer will buy this good regardless of price.

There are no substitutes for Perfect inelasticity

Perfect elasticity demanded

When the changes in price are very

small, it can be said that we have
PERFECT ELASTICITY.

Perfect Elasticity=

It is Horizontal on the graph

Total Revenue

Scenario Price Quantity || Total

10 A
9 B
revenue
8 ( )
7 A 9 2 -5.67 5.67
C
6
D B 8 4
Price

5
4 C 5.50 9 -1 1
3 E
2 F D 4.50 11
1
0 E 2 16 -0.18 0.18
0 5 10 15 20
F 1 18
Quantity

55
49.5
44
38.5
Total Revenue

33
27.5
22
16.5
11
5.5
0
0 5 10 15 20
Quantity
Cross elasticity of demand