The price elasticity of quantity demanded is positive

Economics Dec 23, 2020

The price elasticity of quantity demanded is positive. True or false? Explain.

Expert Solution

Price Elasticity measures the response of the consumers to change in price. The elasticity concept does not increase or decrease per se. It only measures change.

The degrees of elasticity are given as:

Unitary elastic: here elasticity is equal to 1

Perfectly Inelastic: here the is equal to zero

Relatively Inelastic: here the elasticity ranges from 0 to 1

Perfectly Elastic: here the elasticity is infinity

Relatively Elastic: here the elasticity ranges from 1 to infinity

Hence the answer to the above statement is TRUE

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote