Advertisements
Advertisements
Question
What is price elasticity of demand for life saving drugs?
Advertisements
Solution
Lifesaving drugs are necessities. There can be no change in the quantity demanded due to a change in their price. That is, Ed = 0. Lifesaving drugs have a perfectly inelastic demand.
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.
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
Indicate the degree of elasticity demand of the following demand curves.
What is meant by unitary elastic demand?
When is the demand for a commodity said to be perfectly inelastic?
Explain the different types of price elasticity of demand.
What is the price elasticity of demand for the following demand curve?
Straight line demand curve parallel to Y-axis.
A list of goods is given below. state 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
