Answer:
Elasticity is a measure of the responsiveness of the quantity demanded to a change in price. Inelastic demand means elasticity less than 1. There, percentage change in quantity demanded is less than a percentage change in price. For Ex. Percentage change in quantity demanded is 10%, Percentage change in price = 20% So, Elasticity (Ed < 1) = 0.5 Perfectly inelastic demand. When increase are decrease in price does not-effect the quantity demanded, it is known as perfectly inelastic demand. For Ex. - Price change by 10% but quantity demanded remains the same i.e., Percentage change in quantity demand = 0 Percentage change in price = 20% So, elasticity is 0.
You need to login to perform this action.
You will be redirected in
3 sec