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Question
What are the degrees of price elasticity of Demand?
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Solution
The Degrees of Price Elasticity of Demand:
- Perfectly Elastic Demand (Ep = α)
- Perfectly Inelastic Demand (Ep = 0)
- Relatively Elastic Demand (Ep >1)
- Relatively Inelastic Demand (Ep < 1)
- Unitary Elastic Demand (Ep =1).
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Unitary Elastic Demand
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Elasticity resulting from a proportionate change in quantity demanded due to a proportionate change in price.
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