Question

What good may have a perfectly inelastic demand? Why?

Answer 1

Some Goods which are regarded perfectly inelastic are rice, fish, meat, etc., or in short is our basic nessecities. These products are under the perfect competetive market structure that's why if the firms increase its price still, the consumers are tend to buy it cause they dont have other choice but its substitute good.

They are inelastic because they are essentials or our life depends on them i.e without these inelastic goods, our very survival can be at stake, hence they have inelastic demand and hence they are inelastic goods. Both the demand and goods complement each other.

Here, money i.e price does not matter for the good.

The demand line is parallel to the y axis , in case of inelastic demand.