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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.
The elasticity of supply is the same basic formula as the demand elasticity, but looks at the percentage change in quantity supplied instead of percentage change in quantity demanded. The measure looks at the responsiveness of producer to changes in the price of the good produced.