Question

ED=0 in case of......​

Answer 1

Answer:

when ed = 0, it is known as Perfectly Inelastic Demand.

Under the perfectly inelastic demand, irrespective of any rise or fall in price of a commodity, the quantity demanded remains the same.

Answer 2

Complete question:

ED=0 in the case of ........

1. Luxuries

2. Normal goods

3. Necessities

4. Comforts

Answer:

ED=0 in the case of 3. Necessities.

Explanation:

• Price elasticity of demand refers to the measure of the degree of responsiveness of the demand for a good to the corresponding changes in its price.
• Goods price elasticity of demand measures how sensitive the quantity demanded is to its price.
• When the price increases, quantity demanded decreases for almost any good, but it falls more for some than for others
• Basically, It is the percentage change in the demand for a good divided by the percentage change in its price.
• Normal goods are the products and services that consumers will buy regardless of changes in their income levels.
• So, the ED is 0 in case of normal goods.
• Hence, the correct answer among all the options is option 3. Necessities.

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