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Question
Degrees of price elasticity of demand is of ______ types.
Options
three
five
two
four
Solution
Degrees of price elasticity of demand is of five types.
Explanation:
- Perfectly Elastic Demand (Ed = ∞)
- Perfectly Inelastic Demand (Ed = 0)
- Relatively Elastic Demand (Ed > 1)
- Relatively Inelastic Demand (Ed < 1)
- Unitary Elastic Demand (Ed = 1)
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