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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.
Determinants of price elasticity include: Availability of substitutes - if substitutes are plentiful, then demand should be elastic. Relative percentage of expenditure - if an item takes up a considerable proportion of a consumer's income, then demand should be elastic; if it takes up a very small amount, then demand should be expected to be inelastic.