Perfectly inelastic

What is perfectly inelastic?

Perfectly inelastic is a term used in the hotel industry to describe the relationship between supply and demand.

In rare case in which the quantity of rooms supplied or demanded does not change in response to a change in the room price, the supply or demand of that room is considered to be perfectly inelastic.

Numerically, this would be equal to zero (zero divided by the change in price).

Perfectly inelastic is the opposite of perfectly elastic.