Differentiate between flatter and steeper demand curve of elasticity of demand
Answers
Explanation:
It is often thought that the price elasticity of demand can be known by simply looking at the slope of a demand curve, that is, a flatter demand curve has greater price elasticity and a steeper curve has lower price elasticity of demand.
The Answer is given below:
Elasticity of demand refers to the responsiveness of quantity demanded of a particular good with any change in the price of the good.
Flatter demand curve of elasticity of demand shows that slightly change in the price of the commodity lead to a larger change in the quantity demanded.
Steeper demand curve of elasticity of demand shows that large change in the price of the commodity lead to a smaller change in the quantity demanded.
Learn more:
When two demand curves intersect, the elasticity of demand of the flatter demand curve will be more than the steeper demand curve. defend or refute. give reason for your answer?
https://brainly.in/question/4742288
Why market demand curve is flatter than individual demand curve?
https://brainly.in/question/509639