Answer to Question #95924 in Microeconomics for Sana

Question #95924
Describe the price elasticity of demand with diagrams?
1
Expert's answer
2019-10-09T11:00:57-0400

The price elasticity of demand simply shows that to what extent the demand will change (increase or decrease, generally in percentage) for a 1% change in the price level. A small change in price may have a large effect on demand if the demand curve is relatively flatter. A large change in price may have smaller effect in demand when the demand curve is relatively steeper. 

Here are the diagrams that show all possible types of elasticity:


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