Question

If price elasticity of demand for a product is equal to one what will be the nature of the demand curve​

Answer 1

Answer:

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Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity

demanded of a good or service to a change in its price when nothing but the price changes.

More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.

Price elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to ambiguity. Only goods which do not conform to the law of demand, such as Veblen and Giffen goods, have a positive PED. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is, changes in price have a relatively small effect on the quantity of the good demanded. The demand for a good is said to be elastic (or relatively elastic) when its PED is greater than one.

Explanation:

The variation in demand in response to a variation in price is called price elasticity of demand. It may also be defined as the ratio of the percentage change in demand to the percentage change in price of particular commodity.

The formula for the coefficient of price elasticity of demand for a good is:

{\displaystyle e_{\langle p\rangle }={\frac {\mathrm {d} Q/Q}{\mathrm {d} P/P}}} e_{{\langle p\rangle }}={\frac {{\mathrm {d}}Q/Q}{{\mathrm {d}}P/P}}