Special Demand Curves

On a downward sloping demand curve, demand becomes more inelastic as price falls and quantity rises. Therefore when the price is relatively low demand is inelastic.

Perfectly Elastic Demand Graph

The more horizontal a demand curve is, the more relatively elastic it is.

Perfectly Inelastic Demand Graph

The more vertical a demand curve is, the more relatively inelastic it is.

Unit Elastic Demand Graph

For every one unit of price there is an increase of one unit of good/service demanded.

Page last updated on 20/10/13