# 3. When is demand perfectly inelastic? When is demand perfectly elastic? Explain the difference between these...

3. When is demand perfectly inelastic? When is demand perfectly elastic? Explain the difference between these two terms. Provide examples.

When the demand in the market is perfectly inelastic then any change in the price level will not change the demand at all and the people will demand the same amount as they were demanding at a lower price. For example Salt, and food in general, If the price of salt is \$10 people will demand 2 units of salt If the price increased to \$100 people will be demanding the same amount.

Perfectly elastic demand is situation where a slight change in the price will reduce the demand to zero. some goods with perfectly elastic demand are agriculture goods.

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