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