Advertisements
Advertisements
Question
Under what conditions does the supply of good exhibit unitary elasticity?
Advertisements
Solution
When percentage change in quantity supplied is equal to percentage change in supply. Labour specialisation enhances skills and experience. This reduces time and costs for both producers and workers.
`"Unitary elasticity" = (% "change in quantity demanded")/(% "change in price") = 1`
APPEARS IN
RELATED QUESTIONS
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity, which is ______.
With the help of a diagram define perfectly elastic demand.
Mention one example of inelastic demand. Give a reason in support of your answer.
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Matchboxes
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Rolex watches
Mention the degree of price elasticity of demand for the following goods:
Cosmetics
Indicate the degree of elasticity demand of the following demand curves.
Explain the different types of price elasticity of demand.
What is the price elasticity of demand for the following demand curve?
Rectangular hyperbola
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for diesel and petrol
