Question

11. Explain types of price elasticity of demand ?​

Answer 1

Answer:

Price Elasticity

Price Elasticity of Demand. There are three main types of price elasticity of demand: elastic, unit elastic, and inelastic. ...

Midpoint Method for Elasticity. ...

Elastic Demand. ...

Inelastic Demand. ...

Unit Elastic Demand. ...

Price Elasticity of Supply.

Explanation:

Answer 2

Answer:

For better understanding the concepts of elastic and inelastic demand, the price elasticity of demand has been divided into five types, which are shown in Figure-1:

Different Types of Price Elasticity of Demand

Let us discuss the different types of price elasticity of demand (as shown in Figure-1).

1. Perfectly Elastic Demand:

When a small change in price of a product causes a major change in its demand, it is said to be perfectly elastic demand. In perfectly elastic demand, a small rise in price results in fall in demand to zero, while a small fall in price causes increase in demand to infinity. In such a case, the demand is perfectly elastic or ep = 00.

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