ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. Necessities tend to have inelastic demand. Luxuries tend to have elastic demand.

Detailed explanation-2: -The arc price elasticity of demand measures the responsiveness of quantity demanded to a price. It takes the elasticity of demand at a particular point on the demand curve, or between two points on the curve. on a graph. outcome whether price falls or rises.

Detailed explanation-3: -Elasticity is a measure of a variable’s sensitivity to a change in another variable, most commonly this sensitivity is the change in quantity demanded relative to changes in other factors, such as price.

Detailed explanation-4: -If the quantity demanded of a product changes greatly in response to changes in its price, it is elastic. That is, the demand point for the product is stretched far from its prior point. If the quantity purchased shows a small change after a change in its price, it is inelastic.

Detailed explanation-5: -Price elasticity is mainly used to determine how sensitive or reactive is the demand for specific products when the price of the product changes. When the price elasticity of demand is high, it means that a change in the price of a product has a high impact on the overall demand for the product.