Principles of Microeconomics / Unit 4 MIC 0309 short lesson, about 20 seconds
Perfectly Elastic and Perfectly Inelastic
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The idea
A horizontal curve is perfectly elastic: any quantity at one price, none at a higher one. A vertical curve is perfectly inelastic: the same quantity at any price.
In practice
A single wheat farmer faces horizontal demand; a diabetic's insulin demand is nearly vertical.
Where people slip
Perfectly inelastic is not inelastic: inelastic demand still slopes down; only the vertical case does not respond at all.
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