Advertisements
Advertisements
Question
Analyse the given graphs and identify the type of elasticity of demand of:
- Picture 1
- Picture 2
Advertisements
Solution
Picture 1: Perfectly elastic demand ep = ∞
Picture 2: Perfect inelastic demand ep = 0
RELATED QUESTIONS
Draw a diagram showing a perfectly elastic demand curve.
Under what conditions does the supply of good exhibit unitary elasticity?
From the following goods, demand for which is inelastic?
A product's demand is ______ when the time period under consideration is longer.
With the help of a diagram define perfectly elastic demand.
What is unitary elastic demand? Draw a diagram to illustrate it.
Define perfectly elastic demand.
What is the price elasticity of demand for the following demand curve?
Straight line demand curve parallel to Y-axis.
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for personal computers
Sate whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for precious stones and costly jewellery
