Question #249502

how to calculate the price elasticity of demand if the price is at 0


1
Expert's answer
2021-10-12T09:41:39-0400

Demand elasticity=(dQ/dP)×P/Q=(dQ/dP)×P/Q

Therefore, setting price to be zero

Demand elasticity =(dQ/dP)×0/Q=(dQ/dP)×0=0=(dQ/dP)×0/Q =(dQ/dP)×0 =0

This means that the elasticity will be at 0 and it is said to be a perfectly inelastic. This tells that demand will remain unchanged at any price.


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