Question

If the proportion increase in the demand for a good is more than the proportion change in the price
of the good. Comment on the elasticity of demand and mention the value of price elasticity of demand?

Answer 1

Explanation:

if increase in demand is greater than price

this is the case of more elasticity of demand

• example ( ∆q÷ ∆p )
• ed( - ) ∆200% ÷ ∆ 50 = 4 is elasticity of demand ( more elasticity of demand)