AP MicroeconomicsElasticity
Perfectly Inelastic
Perfectly inelastic demand is when any change in price leads to no change in quantity demanded.
In perfectly inelastic demand, consumers are completely insensitive to price changes. This means that changes in price have no effect on the quantity demanded. Perfectly inelastic demand is a theoretical concept that is not often observed in real markets.
Formula / Example
Price Elasticity of Demand = 0
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