Economy, asked by SivasankarN, 3 months ago

If the price of the goods fall by 20% , but there is no change in its quantity demanded by the
given consumer then its elasticity of demand will be equal to :
A. One
B. Zero
C. Less than one
D. Greater than one

Answers

Answered by shinie40
0

Answer:

Key Points

The PED is the percentage change in quantity demanded in response to a one percent change in price.

The PED coefficient is usually negative, although economists often ignore the sign.

Demand for a good is relatively inelastic if the PED coefficient is less than one (in absolute value).

Demand for a good is relatively elastic if the PED coefficient is greater than one (in absolute value).

Demand for a good is unit elastic when the PED coefficient is equal to one.

Key Terms

elastic: Demand for a good is elastic when a change in price has a relatively large effect on the quantity of the good demanded.

Unit Elastic: Demand for a good is unit elastic when the percentage change in quantity demanded is equal to the percentage change in price.

inelastic: Demand for a good is inelastic when a change in price has a relatively small effect on the quantity of the good demanded.

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