Answer
Demand is elastic;
Demand is perfectly inelastic.
Work Step by Step
Price elasticity of demand (PED) is defined as
$\frac{\text{Percentage change in quantity demanded} }{\text{Percentage change in price}}$
1. When PED > 1, the percentage change in quantity demanded is more than the percentage change in price. For example, a percentage increase in price results in a more than proportionate decrease in quantity demanded showing that demand is elastic.
2. When PED = 0, the percentage change in quantity demanded is 0. Any change in price results in no change of the quantity demanded, thus demand is perfectly inelastic.
