Question

1. The Price Elasticity of Demand for a good is −0.78. Which of the following describes...

1.

The Price Elasticity of Demand for a good is −0.78. Which of the following describes the Price Elasticity of Demand?

Group of answer choices

Elastic

Inelastic

Unit elastic

Perfectly elastic

2.

The Price Elasticity of Demand for a good is −1.11. Which of the following describes the Price Elasticity of Demand?

Group of answer choices

Elastic

Inelastic

Unit elastic

Perfectly elastic

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Homework Answers

Answer #1

1

Demand curve shows the relationship between price and quantity demanded

generally there are three types demand-

elastic demand ,inelastic and unit elastic demand

if the value of price elasticity of demand is less than 1 then the demand is considered as inelastic demand

inelastic demand is that about demand in which even there is very high change in the price can causes very low change in the quantity demand

The answer here is option B

2

As explained above if the value is greater than one then the demand is considered as elastic demand

elastic demand is that type demand in which even there is a small change in the price can causes heavy change in the quantity demanded

answer is option A

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