# 1- If the price elasticity of demand for The Wall Street Journal is -13 demand is said to be a elastic. b unit elastic. c perfectly elastic. d inelastic?

### Distinguish between perfectly elastic and ine lastic supply curve?

Perfectly elastic supply curve: The supply of a commodity will be perfectly elastic when its price remain constant but supply changes to any extent.The supply curve will be parallel to x axis.The numerical value of elasticity of supply will be infinity. Perfectly inelastic supply curve: The supply of a commodity will be perfectly inelastic when its supply remain constant but price changes to any extent.The supply curve will be parallel to y axis.The numerical value…

### What is Price and price elasticity of demand?

Price refers to the dollar value of a product, and price elasticity of demand is a measure of the responsiveness of consumers or purchasers to a change in a product's price. There is an equation for calculating price elasticity of demand: Ed (price elasticity) = (% change in quantity demanded) / (% change in price) If Ed is greater than 1, demand is said to be elastic. If Ed is less than 1, demand is…

### What are example of product with perfectly elastic and perfectly inelastic supply?

Elasticity of supply describes how a product's quantity affects its price. Milk, for example, has an elastic supply - the quantity goes up and the price goes down. Or, as the quantity is limited, the price goes up. Inelastic supply implies that availability does not affect price, such as with airplane flight tickets.

### What is the Four determinants of price elasticity of demand?

perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand…

### Explain the difference between price elasticity of demand and the slope of a demand curve?

Price elasticity is a specific type of slope of the demand curve. A perfectly inelastic demand means that the quantity will not change with the price. This line is perfectly vertical. A perfectly elastic demand curve is horizontal and means that at any given quantity, there is only one price. Also, a slope gets steeper, demand becomes more inelastic.

### Using the concept of elasticity explain how a tax on gasoline would affect firms and consumers Who would pay the larger burden of the tax?

First, a quick discussion on elasticity of demand: When demand for an item is perfectly elastic, as prices increase the demand for the item decreases When demand for an item is perfectly inelastic as prices increase the demand for the item does not change In the real world, few items are perfectly elastic or perfectly inelastic. Gasoline is an interesting item when it comes to elasticity. Gas is nearly perfectly inelastic at some levels of…

### What are the elasticities of demand and supply?

The price elasticity of demand and price elasticity of supply refer to the relationship between the rate of change of price and demand or supply. Elasticity is a unit expressed in percentage change - that is, when price changes by 1%, demand (or supply) changes by x%. When the change in demand or supply is x = 0, then the good is said to be perfectly inelastic. 0 < x < 1, then the good…

### What is price elasticity of demand and supply?

Price Elasticity of Demand Price elasticity of demand (PED) shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on quantity demanded. PED can be calculated as PED = % change in quantity demanded / % change in price The range of PED is 0 to Infinite. Less than one [< 1], which means PED is inelastic. Greater than one [> 1], which is…

### Why is it difficult to judge elasticity of demand or supply if you are merely observing the appearance of a demand or supply curve on a graph?

Because it is basically curved shape, therefore, there are points/areas on the curve where the demand or supply will be elastic and on some other parts be inelastic. At the top of the curve, demand/supply tends to be inelastic and at the bottom of the curve, it tends to be elastic. Obviously, the more you go up the more we reach the perfectly inelastic demand/supply and the further you go down the curve, the more…