At what level is demand perfectly elastic/inelastic?
when the demand curve is horizontal/ vertical
Right but what does POD demand equal (numerical range) for you to say it’s perfectly elastic/inelastic?
perfectly elastic ==> elasticity = infinity because deltaQ/deltaP = q/0=infinity. perfectly inelastic ==> delatQ/deltaP = 0/P = 0
Perfect, thanks… Thought it was something like that but just wasn’t sure.