Explain various forms of price elasticity of demand.
Answers
Answered by
0
The extent of responsiveness of demand with change in the price is not always the same.
The demand for a product can be elastic or inelastic, depending on the rate of change in the demand with respect to change in price of a product.
Elastic demand is the one when the response of demand is greater with a small proportionate change in the price. On the other hand, inelastic demand is the one when there is relatively a less change in the demand with a greater change in the price.
Similar questions