Answer to Question #105050 in Microeconomics for kekeletso

Question

critically discuss elastic, inelastic, unitary conditions/forms of price elasticity of demand through the use of practical examples and graphs

Answer 1

Elastic demand refers to the demand when the proportionate change produced in the demand is greater than the proportionate change in price of a product. Its demand ranges between one to infinity

Inelastic demand refers to demand where the percentage change produced in demand is less than the percentage change in the price of a product. Its demand ranges between zero to one

Unitary elastic demand is demand where the proportionate change in demand produces the same change in the price of the product. Its numerical value is equal to one