ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Elastic
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Inelastic
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Unitary elastic
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Perfectly elastic
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Detailed explanation-1: -The price elasticity of supply is given by a similar formula: If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
Detailed explanation-2: -Elasticities can be usefully divided into five broad categories: perfectly elastic, elastic, perfectly inelastic, inelastic, and unitary.
Detailed explanation-3: -Answer and Explanation: Demand is said to be inelastic when a given percentage change in price will result in a less than proportionate percentage change in the quantity demanded.
Detailed explanation-4: -Demand is elastic if the percentage change in the quantity demanded exceeds the percentage change in price. If the percentage change in the quantity demanded equals the percentage change in price. If the percentage change in the quantity demanded is less than the percentage change in price.