It follows from this that if eor ie if the output of the industry is perfectly inelastic, the whole of the increased effective demand (in terms of wage units) is expected to accrue to the entrepreneur as profit, ie ∆Dwr ∆Pr; whilst if eor ie if the elasticity of output is unity, no part of the increased effective demand is expected to accrue as profit, the whole of it being absorbed by the elements entering into marginal prime cost.