Arrange the following elasticities of demand in increasing order.

(A) Elastic Demand

(B) Perfectly Elastic Demand

(C) Inelastic Demand

(D) Unitary Elastic Demand

(E) Perfectly Inelastic Demand

Choose the correct answer from the options given below :

(E), (C), (D), (A), (B)

The correct answer is option (1) : (E), (C), (D), (A), (B)

The order is based on the degree of responsiveness of quantity demanded to a change in price :

Perfectly Inelastic Demand (E) : Quantity demanded remains constant regardless of price changes. The elasticity of demand is zero.

Inelastic Demand (C) : quantity demanded is relatively less responsive to price changes.  Elasticity of demand is between 0 and 1.

Unitary Elastic Demand (D) : Percentage change in quantity demanded is equal to the percentage change in price. Elasticity of demand is exactly 1.

Elastic Demand (A) : Demand is elastic when the percentage change in quantity demanded is greater than the percentage change in price. Elasticity of demand is greater than 1.

Perfectly Elastic Demand (B): This occurs when the quantity demanded changes infinitely with a small change in price. The elasticity of demand is infinite.