Elesticity - What must be true about the demand function if E=0?

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SUMMARY

The discussion clarifies that when the elasticity of demand (E) equals 0, the demand function is perfectly inelastic. This means that the quantity demanded remains constant regardless of price changes. A participant incorrectly stated that E=0 indicates perfect inelasticity, but the correct interpretation is that E=0 signifies a perfectly constant demand function. Understanding this distinction is crucial for accurately analyzing demand behavior in economic models.

PREREQUISITES
  • Understanding of elasticity of demand concepts
  • Familiarity with economic terminology related to demand functions
  • Knowledge of how price changes affect quantity demanded
  • Basic principles of microeconomics
NEXT STEPS
  • Review the definitions of elasticity in economics
  • Study the implications of perfectly inelastic demand on market behavior
  • Explore real-world examples of goods with perfectly inelastic demand
  • Learn about other types of elasticity, such as unitary and elastic demand
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Economics students, market analysts, and anyone interested in understanding demand behavior in relation to price changes.

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What must be true about the demand function if E=0?
i know that E=0 is perfectly inelastic. What is it about the demand function?
 
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gillgill said:
What must be true about the demand function if E=0?
i know that E=0 is perfectly inelastic. What is it about the demand function?

No, you don't know that. "E= 0" is perfectly constant, not "perfectly inelastic"! If E, the "elasticity of demand", is 0 then, by definition of E, it is the demand that is "perfectly inelastic". Review your books definition of "E".
 

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