What is elasticity of demand explain different types and degrees of elasticity of demand?
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Heya...
Elasticity of demand ....
It is a measurement of degree of change in % in Quantity demanded with response to % change in price of a commodity....
There are 5 degrees of elasticity in economy...
** 1 Rectangular hyperbola or unitary elasticity...
In this % change in qu is equal to % change in price ...And Ed is 1....
** 2 Perfect elastic ....
In this there is a huge change in Quantity even when prices are same... Ed is Infinity....
** 3 perfectly inelastic....
In this there is no change in qu with change in price....Ed is 0...
** 4 Elastic....
In this there is more % change with % change in price ...Ed is > 1....
** 5 Inelastic...
In this % change is less than % change in price...Ed is < 1....
Elasticity of demand ....
It is a measurement of degree of change in % in Quantity demanded with response to % change in price of a commodity....
There are 5 degrees of elasticity in economy...
** 1 Rectangular hyperbola or unitary elasticity...
In this % change in qu is equal to % change in price ...And Ed is 1....
** 2 Perfect elastic ....
In this there is a huge change in Quantity even when prices are same... Ed is Infinity....
** 3 perfectly inelastic....
In this there is no change in qu with change in price....Ed is 0...
** 4 Elastic....
In this there is more % change with % change in price ...Ed is > 1....
** 5 Inelastic...
In this % change is less than % change in price...Ed is < 1....
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