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on 2 Why might a good be perfectly inelastic? Give an example of a good that is perfectly inelastic. ered ed out of > lag Par
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Ans: A good is said to be perfectly inelastic if due to change in price, quantity demanded does not change.

Explanation: The good might be perfectly inelastic because:

  • There is no substitute available.
  • The good is a necessity of high degree.

Example: Life saving drug.

In case of life saving drugs, consumers tend to buy them at any price prevailing in the market.

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