Elasticity and 5 Degree’s of Elasticity

what is elasticity

5 Degree’s of Elasticity

5 degree's of elasticity

perfectly inelastic and unitary elastic

representing all degree of elasticity in one graph

Practice Question:

1. At a price of Rs 10 consumer demands 40 units, when price falls by Rs 2 then he increases his demand to 44 units. find Elasticity?

Ans: -1/2 or -0.5

2. At a particular price consumer demands 80 units. When the price rises by Rs 3 demand decrease by 20%. find the original price if the elasticity is 2.

Ans – 30 Rs

See Also:

What is demand forecasting?

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