Question

what is elasticity of demand? explain the types of price elasticity of demand.​

Answer 1

Answer:

Elasticity of demand means degree of responsiveness of demand towards various factors. there are 5 types of price elasticity of demand named:

1. Perfectly elastic (Ep=)

2. Perfectly inelastic (Ep=0)

3. Unit elastic. (Ep=1)

4. Relatively elastic. (Ep>1)

5. Relatively Inelastic. (Ep<1)