In a market with perfectly inelastic supply, the price of a good will not change when there is a decrease in demand for that good.
No, the demand for insulin is not perfectly inelastic.
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
it is perfectly inelastic
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
as quantity is totally unresponsive of price, consumer has no alternative in perfectly inelastic demand, he will pay any price for it. examples are air, water, electricity etc.
No, the demand for insulin is not perfectly inelastic.
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
it is perfectly inelastic
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
as quantity is totally unresponsive of price, consumer has no alternative in perfectly inelastic demand, he will pay any price for it. examples are air, water, electricity etc.
yes the demand curve is perfectly inelastic and horizontal
A perfectly elastic demand curve means that the quantity demanded changes infinitely with a change in price, while a perfectly inelastic demand curve means that the quantity demanded remains constant regardless of price changes.
When supply and demand are perfectly elastic/inelastic
A perfectly price-inelastic demand curve is vertical (Parallel to Y-axix) because the percentage change in quantity demanded is nil whatever the percentage change happens in price.
When a reduction in price results in a decrease in total revenue.
demand is inelastic
An example of perfectly inelastic demand would be a life-saving drug that people will pay any price to obtain. Elastic demand is the opposite of this.