Login

Explain the various degrees of price elasticity of demand.

The answer to your question is already covered in our study material. Follow the given link and scroll down to the topic ' Price elasticity of demand or simple elasticity of demand' to view the same.

https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-microeconomics/theory-of-consumer-behaviour/338_1981_5807#slide6_elasticity-of-demand-or-price-elasticity-of-demand

  • -1
View Full Answer
1. Ed=1
this is the case of unitary Elastic demand. no matter whether Px increases or decrease total expenditure remains constant.

2. Ed>1
this is the case of elastic demand. fall in the price of commodity causes rise in total expenditure and rise in price causes fall in total expenditure of commodity.

3. Edthis is the case of inelastic demand. fall in the price of commodity causes fall in total expenditure and rise in price causes rise in total expenditure.

4. Ed=0
this is the condition of perfectly inelastic demand.

5. Ed= infinity
this is the condition of perfectly elastic demand.
  • 4
What are you looking for?