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Constant Elasticity Demand Curves. The elasticity of demand is the same at every point along a constant elasticity demand curve. Panel a of the figure shows five constant elasticity demand curves. A perfectly inelastic demand curve, where e = 0 everywhere, is a vertical straight line. The next most vertical demand curve in the figure is also inelastic, with a demand elasticity of -1/3 everywhere.
Elasticity in General Elasticity measures the percent change in one economic variable when there is a 1%change in a different economic variable. There are many different elasticities; here weâlllook at the price elasticity of demand and the price elasticity of supply. Price Elasticity of Demand The price elasticity of demand measures how consumers respond to a price change. Theprice elasticity of demand is the percentage change in quantity demanded of a gooddivided by the percentage change in the price of that same good (and you must take theabsolute value of the whole thing).