Advertisements
Advertisements
Question
The value of price elasticity of demand is 0.8. Is demand elastic or inelastic? Give reason.
Advertisements
Solution
Inelastic because the value of Ed is less than one (Ed < 1)
APPEARS IN
RELATED QUESTIONS
Under what conditions does the supply of good exhibit unitary elasticity?
With the help of a graph explain a perfectly inelastic demand curve.
When despite of no change in the price of the good, its quantity demanded increases from 10 units to 15 units, then coefficient of price elasticity will be ______.
A product's demand is ______ when the time period under consideration is longer.
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Matchboxes
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
When is the demand of a commodity said to be inelastic?
When is the demand for a commodity said to be perfectly inelastic?
What is the price elasticity of demand for the following demand curve?
Straight line demand curve parallel to X-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
