Perfectly Inelastic Demand
Definition
Perfectly inelastic demand occurs when there is no change in quantity demanded despite any change in price. Consumers are completely unresponsive to price fluctuations.
Analogy
Picture yourself at your favorite concert where tickets are limited. No matter how high they raise the ticket prices, die-hard fans will still buy them because they can't resist attending their favorite band's performance.
Related terms
Elasticity Coefficient (Ep): A measure used to determine whether demand is elastic, unit elastic, or inelastic.
Unitary Elasticity/Unit Elastic Demand: When percentage changes in price result in equal percentage changes in quantity demanded.
Perfectly Elastic Demand: When any increase in price leads to zero quantity demanded, and any decrease in price leads to an infinite quantity demanded.
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