What are the types of Price Elasticity of Demand?
Answers
Answer:
Explanation:
The following are some of the types of Price Elasticity of Demand:
1. Perfectly Elastic Demand
A perfect elastic demand refers to the situation when a slight fall in price leads to increase in the demand infinitely or by unlimited quantity or a slight rise in price leads to a position of no demand of the product. It is referred as infinite elasticity.
2. Perfectly Inelastic Demand
A perfectly inelastic demand refers to a situation where the demand remains constant irrespective of the price. This is also known as zero elasticity.
3. Relatively Elastic Demand
A relatively elastic demand refers to a situation where a greater change in demand leads to a small price change. It is also referred as simple elastic or highly elastic demand.
4. Relatively Inelastic Demand
A relatively inelastic demand refers to a situation where we find a slight change in demand due to a greater change in price. It is referred as simply inelastic or less elastic demand.
5. Unitary Elastic Demand
A unitary elastic demand refers to a situation where we find the percentage change in price is equal to the percentage change in the quantity demanded . It is also referred as unitary elasticity.
Hope this helps.