Microeconomics › Section E · Elasticity › Topic E.2
Perfectly elastic, perfectly inelastic, and constant elasticity
Elasticity runs from zero to infinity, and the two ends of that range are worth visiting even though few real markets sit exactly there. Perfectly flat and perfectly vertical curves are the bookends every actual market sits between - and between them lies one special shape whose elasticity never changes.
In this topic
- Why visit the extremes
- Perfectly elastic: the horizontal limit
- Perfectly inelastic: the vertical limit
- Constant unitary elasticity
- Worked example: checking the two shapes
- The revenue lens
- Worked example: classifying curves on sight
- Elasticity is not slope
- Common mistakes to avoid
- Key takeaways
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