Question

Explain all degrees of Elasticity of demand.......

Class 11th........

Answer 1

Answer:

There are 5 degrees to measure price elasticity of demand:

1). Perfectly elastic demand:- It is situation in which price remain fix but demand can increase or decrease up to any extent.

2). Perfectly inelastic demand:- It is situation in which price may increase or decrease upto any extent but demand will remain fixed or same.

3). Unitary Elastic demand:- It is a situation in which percentage change in price brings same percentage change in demand.

4). Less elastic demand:- It refers to a situation in which % change in price is more but % change in demand is less.

5). Highly elastic demand:- It refers to a situation in which % change in price is less but % change in demand is more.