Elasticity of Demand when Price Remains Constant and Quantity of Demand Changes:

When the price of a product or service remains constant and the quantity of demand changes, the elasticity of demand will depend on the nature of the product or service being offered. The elasticity of demand refers to the responsiveness of the quantity demanded of a good or service to a change in its price.

Types of Elasticity of Demand:

There are several types of elasticity of demand, including:

1. Perfectly Inelastic Demand: This occurs when the quantity demanded remains constant regardless of changes in price. In this case, the elasticity of demand is zero.

2. Inelastic Demand: This occurs when the quantity demanded changes very little in response to changes in price. In this case, the elasticity of demand is less than one.

3. Unit Elastic Demand: This occurs when the percentage change in quantity demanded is equal to the percentage change in price. In this case, the elasticity of demand is equal to one.

4. Elastic Demand: This occurs when the quantity demanded changes significantly in response to changes in price. In this case, the elasticity of demand is greater than one.

5. Perfectly Elastic Demand: This occurs when a small change in price leads to an infinite change in the quantity demanded. In this case, the elasticity of demand is infinite.

Factors Affecting Elasticity of Demand:

There are several factors that can affect the elasticity of demand, including:

1. Availability of substitutes: If there are many substitutes available for a product or service, then the elasticity of demand will be high.

2. Nature of the product: If a product is a necessity, then the elasticity of demand will be low. If it is a luxury item, then the elasticity of demand will be high.

3. Time: In the short run, the elasticity of demand is often low, as consumers may not have time to find alternatives. In the long run, however, the elasticity of demand is often higher.

4. Income: If a product or service is a large part of a consumer's budget, then the elasticity of demand will be high.

Conclusion:

In conclusion, the elasticity of demand when price remains constant and quantity of demand changes depends on the nature of the product or service being offered, and several other factors. Understanding the elasticity of demand is important for businesses to determine how much to increase or decrease their prices, and to help them make informed decisions about their products and services.

Perfect elastic of demand