Question

Higher the price level higher should be the price of the elasticity. Evaluate the statement

Answer 1

Heya...

According to law of demand ..When price rides of a commodity then it's demand falls and vice versa...

So in the situation of higher price elasticity is high it is correct..

because ... elasticity measures % change in Quantity demanded in response to change in price..

So if price will high then most people change their demand leads to higher elasticity...