ECONOMICS
ELASTICITY OF DEMAND
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Detailed explanation-1: -If price elasticity is greater than 1, the good is elastic; if less than 1, it is inelastic. If a good’s price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic.
Detailed explanation-2: -Answer and Explanation: If the price elasticity of demand for a good is 0.75, the demand for the good can be described as A. elastic. A good is inelastic if the quantity demanded tends to remain relatively constant despite changes in price.
Detailed explanation-3: -when the price is is rs 5 per unit a consumer buys 40 unit of a commodity and his price elasticity of demand is-1.5 how much will he buy if the prices reduced to rs 4 per unit. Hence, the new quantity demanded is 52 units.
Detailed explanation-4: -If the value is less than 1, demand is inelastic. In other words, quantity changes slower than price. If the number is equal to 1, elasticity of demand is unitary.