A PED coefficient equal to zero indicates perfectly inelastic demand. This means that demand for a good does not change in response to price. Perfectly Inelastic Demand: When demand is perfectly inelastic, quantity demanded for a good does not change in response to a change in price.

What is perfectly inelastic demand example?

Perfectly inelastic products would be something like air or water, and no one can really restrict that at this point in time. The most common products that are inelastic would be food, prescription drugs, and tobacco products. Another product that could be considered close to perfectly inelastic would be gas.

Is perfectly inelastic demand infinite?

The quantity demanded is extremely responsive to price changes, moving from zero for prices close to P to infinite when prices reach P. While perfectly inelastic demand is an extreme case, necessities with no close substitutes are likely to have highly inelastic demand curves.