Elasticity and Consumer Choices in Economics

For which of the following products is demand most likely to be perfectly inelastic?

Insulin

infinite elasticity (perfect elasticity)

The quantity demanded or supplied changes by a infinite amount in response to change in price.

perfectly elastic supply curve

are unrealistic goods with available inputs and whose production can be easily expanded will feature highly elastic supply curves

To graph a perfectly elastic supply curve, draw a line which is

horizontal

Zero elasticity/perfect

is extreme in which a percentage change in price results in zero change in quantity.

constant unitary elasticity

occurs when a price change of one percent results in quantity change of one percent.

Demand in the graph above is

perfectly inelastic

If the supply curve an essential good is perfectly inelastic, then a reduction in demand will cause the equilibrium price of that good to:

rise and the equilibrium quantity to fall

If the demand curve for an essential good is perfectly inelastic, a reduction in supply will cause the equilibrium price of that good to:

rise and the equilibrium quantity to stay the same