Price elasticity of demand for flowers and toys are - 0.9 and - 0.5 respectively demand for which is more elastic and why?
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Demand for flower is more elastic. It is because more the price elasticity more elastic the demand of a product will be. It is important to note that (-) sign before price elasticity represent that demand curve is downward sloping. So 0.9 is bigger hence it is more elastic.
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