Question

1. What is characteristic of the demand for a commodity that is elastic or inelastic or unit elastic?

2. In economics total cost include __________ (implicit or explicit or both???)

Answer 1

When the demand is elastic., Then the percentage change in the quantity demand is greater than the percentage change in the price.

When the demand is inelastic, the percentage change in the quantity demand is less than the percentage change in the price.

When the demand is unit elastic, the percentage change in the quantity demand is equal to the percentage change in the price.

2.

Since in the economics both explicit and implicit cost are considered.

Hence total cost=implicit cost+ explicit cost

It means both implicit cost and explicit cost.