Whenever there is a change in some variables it brings about a change in the quantity for the commodity purchased over a specified period of time. Discuss the different types of elasticity of demand.

The different types of elasticity of demand are as follows:

1. Relatively Elastic Demand: The demand for a good is said to be relatively elastic when a 1% change in price of the good leads to more than 1% change in quantity demanded of the good. The elasticity in such cases is greater than 1 and is generally shown in goods having large availability of substitutes such as shampoos, or chocolates.

2. Relatively inelastic demand: Demand is said to be relatively inelastic in nature when a 1% change in the price of the good leads to less than 1% change in the quantity demanded of the good. The elasticity in such cases is less than 1. Inelastic demand is generally visible in case of monopoly goods and necessary goods such as salt and sugar.

3. Unitary elastic demand: Demand is said to be unitary elastic when a 1% change in the price of the good changes the quantity demanded of the good by 1%. The elasticity of demand in such cases is equal to 1.

4. Perfectly elastic demand: Demand is said to be perfectly elastic when the quantity demanded of the good varies infinitely at the same price level. The demand curve in such cases tend to be horizontal in nature and the elasticity of demand is equal to infinity. This is usually seen in case of war situation .

5. Perfectly inelastic demand: Demand is perfectly inelastic when the quantity demanded of the good remains same at all price levels, i.e any change in price will bring no change in the quantity demanded of the good. The elasticity in such case is equal to 0 is usually seen in case of essential life saving goods or drugs. The demand curve in such case tends to be vertical in nature.