Question

conclusion on theory of demand project.

Answer 1

Explanation:

If the elasticity is between 0-1, demand is said to be inelastic (little change). Greater than 1, demand is said to be elastic (great change). ... Since 1.33 is greater than 1, we can conclude that the demand is elastic, meaning that the change in demand caused by the change in price is considered “a lot.”....

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Answer 2

The theory of demand project that when price increases for a good, demand decreases and vice versa.

Explanation:

• The theory of demand project the relationship between the demand for a good and its price. It shows how the relationship changes drastically in response to demand and price.
• According to the theory, if the price for a good rises then its demand falls and similarly if the price falls, demand for a good rises. Thus, irrespective of other aspects like sales and supply, demand and price has a direct relationship.
• Sometimes, the suppliers influence demand by increasing or decreasing the price of the good, thus creating a illusionary demand for a product in the market.