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Question
Given values of price elasticities of demand, less 'elastic' demand is ______.
Options
−2
1.8
0.8
−1.5
Solution
Given values of price elasticities of demand, less 'elastic' demand is 0.8.
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RELATED QUESTIONS
Give economic term:
Degree of responsiveness of quantity demanded to change in income only.
Statements that are related to cross elasticity of demand:
- Change in quantity demanded of one commodity due to a change in the price of other commodity
- It is a type of elasticity of demand.
- It is applicable to complementary goods and substitutes.
- It is expressed as Ey = % ΔQ / %ΔY
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Reasoning (R) : Changes in consumers income leads to a change in the quantity demanded.
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With the help of a diagram, explain the Unitary elastic demand curve.
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