### 1. Perfectly elastic demand and perfectly inelastic demand. Distinguish between:

Distinguish between:

1. Perfectly elastic demand and perfectly inelastic demand

 Perfectly elastic demand Perfectly inelastic demand It implies that the demand is infinitely responsive to any change in the price of the good. It implies that the demand is completely unresponsive to any change in the price of the good. The perfectly elastic demand curve is parallel to the OX axis. The perfectly elastic demand curve is parallel to the OY axis. Here, Ed = ∞ Here, Ed = 0