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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unit elastic
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None of the above
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Detailed explanation-1: -An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.
Detailed explanation-2: -If the percentage change in quantity demanded is less than the percentage change in price, demand is said to be price inelastic, or not very responsive to price changes.
Detailed explanation-3: -Price inelastic demand means only that the percentage change in quantity is less than the percentage change in price, not that the change in quantity is zero.
Detailed explanation-4: -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-5: -When percentage change in quantity demanded is equal to the percentage change in price, the elasticity of demand is unitary elastic.