PRICE ELASTICITY OF DEMAND.
- Created by: heenaanwaradam
- Created on: 14-10-18 16:50
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- PRICE ELASTICITY OF DEMAND.
- PRICE ELASTICITY OF DEMAND.the responsiveness of changes in quantity demanded to changes in price.
- ELASTIC DEMAND.price elasticity of demand is greater than 1.responsiveness of demand is proportionally greater than the change in price. demand is perfectly elastic if it is infinity.
- INELASTIC DEMAND. price elasticity of demand is less than 1.responsiveness of demand is proportionally less than the change in price. demand it is perfectly inelastic if it is zero.
- UNITARY ELASTICITY.where the value of price elasticity of demand is 1.responsiveness of demand is proportionally equal to the change in price.
- INELASTIC DEMAND. price elasticity of demand is less than 1.responsiveness of demand is proportionally less than the change in price. demand it is perfectly inelastic if it is zero.
- ELASTIC DEMAND.price elasticity of demand is greater than 1.responsiveness of demand is proportionally greater than the change in price. demand is perfectly elastic if it is infinity.
- FORMULApercentage change in quantity demanded/ percentage change in price.
- TOTAL EXPENDITURE= QUANTITY PURCHASED* PRICE
- TOTAL REVENUE= QUANTITY SOLD* PRICE
- TOTAL EXPENDITURE= QUANTITY PURCHASED* PRICE
- ALTERNATIVE FORMULA.percentage change= new value - original value/ original value* 100%
- PRICE ELASTICITY OF DEMAND.the responsiveness of changes in quantity demanded to changes in price.
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