Price of rubber bandity of Demand gives the percentage change in quantity requiremented in response to a one percent change in price. Price tractileity are always negative, although analysts hightail it to edit out the sign even though this can lead to ambiguity. hardly dears which do not conform to the law of demand adjudge a positive PED. In general, the demand for a well(p) is said to be relatively inflexible when the PED is less than one. The demand for a good relatively elastic when its PED is greater than. It measures the reactivity of quantity demanded change in price. When we have inelastic demand, a consumer leave alone pay al some any price for the good. tractile demand therefore means that demand for the product impart vary when its price changes. Generally goods, which have elastic demand, tend to have many substitutes, so if the price of one good increases too much I will substitute out towards a similar good which is cheaper.
2.What is the different between inelastic and elastic demand?
Elastic demand is a sign of demand that will rise or fall depending on the price of the good; more elastic means it moves more. Elastic demand is more likely to be affected by circumstances.
For example, demand for many luxury items is fairly elastic for non-wealthy nation because if they lose their jobs, the economy goes into recession; they tend to stop purchase the luxury stuff. Candy bars are also an elastic demand. If the price of candy is around $1, most people will buy the candy and it will be high in demand. However, if that same candy bars price raised up to $4, most people would not buy the candy.
Inelastic demand is the opposite. race will buy goods with an inelastic demand no question what the price is. A good example of this would be gas. good deal complain about gas prices, they still buy it because they essential it, even if it $3 a gallon. Another example would be life-saving medications. Even if they are expensive, people...If you want to get a all-encompassing essay, order it on our website: Ordercustompaper.com
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