Question

Define the term ‘unit elasticity’? How is this different to what is meant by ‘elastic demand’?...

Define the term ‘unit elasticity’? How is this different to what is meant by ‘elastic demand’?

use the microeconomics knowledge to answer, please. may need to use the diagram.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

For unit elastic demand, the value of price elasticity of demand is equal to 1

It means the proportion change in the price is same as the proportion change in the quantity demanded

It is represented on price and quantity demanded curve

Elastic demand in simple terms is that type of demand in which even there is a small change in price causes heavy change in the quantity demanded

The value of price elasticity of demand is greater than 1 for elastic demand

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Talk about price elasticity of demand, and how it is different from income elasticity. Propose and...
Talk about price elasticity of demand, and how it is different from income elasticity. Propose and calculate a numerical example for each. Also describe price elasticity of supply and use its formula to numerically calculate an example. In each case, make sure to identify whether the outcome is elastic/inelastic/unit elastic, and what the sign of the outcome implies. SHORT ANSWER PLEASE!
What is your elasticity of demand for going to this school? Is it elastic, inelastic, or...
What is your elasticity of demand for going to this school? Is it elastic, inelastic, or unit elastic? Explain your reason. If tuition rose 10%, what would you do? What is your elasticity of demand for gasoline? is it elastic, inelastic, or unit elastic? explain your reason. If gas prices rose 10%, what would you do? What is your elasticity of demand for movies?, is it elastic, inelastic or unit elastic? Explain your reason. if movie ticket prices rose 10%,...
What is price elasticity of demand? What determines whether a product’s demand is elastic, inelastic, unitary...
What is price elasticity of demand? What determines whether a product’s demand is elastic, inelastic, unitary elastic, perfectly elastic and perfectly inelastic? What is mid-point formula to determine the elasticity of demand and why is it important to use it instead of the general formula for elasticity? Carefully explain.
Explain the price elasticity with appropriate formula. Also explain, how it will defer for elastic &...
Explain the price elasticity with appropriate formula. Also explain, how it will defer for elastic & inelastic goods. Please need detailed response with diagram.  
What is perfectly elastic demand/supply? Draw a graph to represent perfectly elastic demand/supply. What is perfectly...
What is perfectly elastic demand/supply? Draw a graph to represent perfectly elastic demand/supply. What is perfectly inelastic demand/supply? Draw a graph to represent perfectly elastic demand/supply. When the price of t-shirts increases by 12 percent, the quantity of t-shirts demanded falls by 20 percent. Calculate the price elasticity of demand. Is the demand for t-shirts elastic, inelastic, or unit elastic? When the price of t-shirts falls by 30 percent, the quantity of t-shirts supplied decreases by 20 percent. Calculate the...
Define what happens to revenue and why, when there is a price increase in a product...
Define what happens to revenue and why, when there is a price increase in a product that has a price elasticity of demand that is elastic, inelastic, and unity elastic. In your answer be sure to also explain what makes price elasticity of demand elastic, inelastic, and unit elastic.
Define the price elasticity of demand and explain how total revenue is related to price elasticity.
Define the price elasticity of demand and explain how total revenue is related to price elasticity.
Define the concept of price elasticity of demand and describe how an increase in the number...
Define the concept of price elasticity of demand and describe how an increase in the number of substitute products affects the price elasticity of demand of a good.
1. Graphically, what does the demand curve look like when demand is perfectly elastic? When it...
1. Graphically, what does the demand curve look like when demand is perfectly elastic? When it is perfectly inelastic? 2. What is the relationship--if there is one--between the price elasticity of demand and the slope of the demand curve? 3. In the context of elasticity, how can goods be classified as "substitutes," "complements," or "independent goods?" (Hint: think about this in terms of the number values used to define elasticity.)
How does one determine whether demand/supply is elastic, inelastic, or unit elastic?
How does one determine whether demand/supply is elastic, inelastic, or unit elastic?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT