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If the elasticity is greater than 1, is demand elastic or inelastic If the elasticity
Chapter 5, Problem Questions for Review 5.4(choose chapter or problem)
QUESTION:
If the elasticity is greater than 1, is demand elastic or inelastic? If the elasticity equals 0, is demand perfectly elastic or perfectly inelastic?
Questions & Answers
QUESTION:
If the elasticity is greater than 1, is demand elastic or inelastic? If the elasticity equals 0, is demand perfectly elastic or perfectly inelastic?
ANSWER:Step 1 of 2
The value of price elasticity of demand decides whether it is unit elastic, elastic, perfectly elastic, inelastic, or perfectly inelastic. The percentage method of price elasticity of demand is,
When the price elasticity of demand is greater than one, then it is said that the demand is elastic. This happens because the change in quantity demand is greater than the price change.