Advertisements
Advertisements
Question
What is unitary elastic demand? Draw a diagram to illustrate it.
Advertisements
Solution
When a proportional change in price causes an equivalent proportional change in demand. The coefficient for unitary elastic demand is 1.
APPEARS IN
RELATED QUESTIONS
With the help of a graph explain the relatively inelastic demand for a commodity.
Under what conditions does the supply of good exhibit unitary elasticity?
Demand is inelastic for ______.
Draw a diagram showing elasticity of demand less than one.
Mention the degree of price elasticity of demand for the following goods:
Medicine
Mention the degree of price elasticity of demand for the following goods:
School uniform
Indicate the degree of elasticity demand of the following demand curves.
How do we determine whether the demand for a particular commodity is elastic or inelastic?
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for school uniform
