Demand elasticity is how much demand is affected based on a change in price. An elastic good is highly affected by price small chanages. Demand plummets and people substitue for something else. An inelastic good is not affected by any size change in price. Basically, elasticity is a measure of how essential a good is to people. On a supply/demand chart, demand elasticity is measured by the slope of the demand curve. Steeper curves are less elastic. Examples: Gasoline demand is fairly inelastic. Global demand for gasoline changes very little between $1.50 per gallon and $3.00. People buy almost the exact same amount at any price (in the short run). A particular brand of coffee would be fairly elastic. If Folgers and Maxwell House were both selling coffee for $4 a pound demand would be fairly equal (assuming there are no taste differences and brand loyalty). If Folgers raised their price to $4.25, pretty much everyone would buy the Maxwell House, all else being equal.
The price elasticty coefficient is fractional.
the higher the price,the shorter the quantity
See the related link. A perfectly inelastic demand would be a line straight up and down. That would show that demand is constant regardless of the price.
A perfectly inelastic demand curve will be completely horizontal and means that consumers would any price for a particular good, which is almost impossible. The closer to being horizontal a demand curve is, the more inelastic the demand.
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
The price elasticty coefficient is fractional.
the higher the price,the shorter the quantity
In economics, the law of demand states:- As the price of a good or service increases, the demand for that good or service will decrease.- As the price of a good or service decreases, the demand for that good or service will increases.
See the related link. A perfectly inelastic demand would be a line straight up and down. That would show that demand is constant regardless of the price.
A perfectly inelastic demand curve will be completely horizontal and means that consumers would any price for a particular good, which is almost impossible. The closer to being horizontal a demand curve is, the more inelastic the demand.
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Because demand creates the price, and not the price dictates the demand.
Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a specific period. It reflects the relationship between price and quantity demanded, often following the law of demand which states that as price decreases, quantity demanded increases, and vice versa.
Higher demand, the higher the price goes. Remove the demand for something and then the price drops.
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
A perfectly elastic demand is one whos demand curve is a perfectly horizontal line. This means that at the same price for the item, the consumer is willing to buy more and more even at that same price.
bez when demand function have price on y-axis, its mean that price have the inverse relation to the demand, in other words price lead to demand curve.