The other extreme is a vertical demand curve that indicates an item is perfectly inelastic. These items are necessary and have no substitutes; for example, a life-saving drug that people will pay ...

Bryan Caplan has an interesting post on the minimum wage that has a lot of good points in it. However, I think he is off the mark in one place. He argues that there is a contradiction between two ...

Perfectly inelastic demand occurs rarely in the real world. Close examples might include rare medicines, or fresh water in a time of drought: regardless of any price changes, these products will ...

If price elasticity is greater than 1, the good is elastic; if it is less than 1, it is inelastic. If a good’s price elasticity is 0, there is no amount of price change that produces a change in ...