Elasticity: A Measure of Responsiveness. The Price Elasticity of Demand. The price elasticity of demand ( E d ) measures the responsiveness of consumers to changes in price. The Price Elasticity of Demand.
When demand is perfectly elastic, the quantity demanded is infinitely responsive to changes in price, so the price elasticity of demand is infinite.Price Elasticity andthe Demand Curve
The midpoint method measures the percentage changes more precisely, so we get a more precise measure of price elasticity.
When supply is perfectly inelastic, the quantity supplied is the same at every price, so the price elasticity of supply is zero.Extreme Cases: Perfectly Inelastic Supply and Perfectly Elastic Supply