Created by Dr .Raavi Jain

1. DEGREES OF PRICE ELASTICITY
OF DEMAND

2. DEGREES OF PRICE ELASTICITY OF
DEMAND
1. Perfectly Elastic
2. Perfectly Inelastic
3. Unitary Elastic
4. Relatively more elastic
5. Relatively less elastic

3. 1. PERFECTLY ELASTIC
d
O
X
Y
P
d1
Ed = ∞
QUANTITY DEMANDED
P
R
I
C
E

4. 2. PERFECTLY INELASTIC
p1
O
X
Y
p
d
Ed = 0

5. 3. UNITARY ELASTIC
p1
O
X
Y
p
d1
Ed = 1
d

6. 4. RELATIVELY MORE ELASTIC
p1
O
X
Y
p
d1
Ed > 1
d

7. 5. RELATIVELY LESS ELASTIC
p1
O
X
Y
p
d1
Ed < 1
d

8. ALL KINDS OF DEMAND CAN BE SHOWN
IN ONE DIAGRAM AS FOLLOW
D
D1
D2
D3
D4
D5
Y
X0
DEMAND
P
R
I
C
E
Where:
D1) Perfectly elastic
demand
D2) Relatively elastic
demand
D3) Elasticity of
demand equal to
utility
D4) Relatively inelastic
demand
D5) Perfectly inelastic
demand