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Written by:

Judith V


Date added:

December 1, 2013








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6 / 1636


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It is measured as elasticity, that is it measures the relationship as the ratio of percentage changes between quantity demanded of a good and changes in its price Interpretation of elasticity Value Meaning n = 0 Perfectly inelastic. 0 > n > -1 Relatively inelastic. n = -1 Unit (or unitary) elastic...
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Goods and services for which no substitutes exist are generally inelastic. Perfectly Inelastic Demand Perfectly Elastic Demand Elasticity and revenue When the price elasticity of demand for a good is inelastic (|Ed| < 1), the percentage change in quantity demanded is smaller than that in price. Hence, when the price is raised, the total revenue of producers rises, and vice versa...
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