0
When is demand when absolute price elasticity of demand equals 2.5?
Wiki User
∙ 11y ago
Meaning that if prices change by 1%, the change in quantity would be 2.5%
(at $100/piece, 1000 goods are consumed. if the price rises to $101, only 975 goods are consumed. And if the price falls to $99, 1025 goods are consumed.)
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Distinguish between price and income elasticity of demand?
distinguish between price elasticity of demand and income elasticity of demand
What are the 3 types of elasticity?
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
If the elasticity of demand is equal to one then the demand is?
Unitary elasticity is when the price elasticity of demand is exactly equal to one.
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
What is role of price elasticity of demand in business decision?
role of price elasticity of demand in managerial decisions
Distinguish between price and income elasticity of demand?
distinguish between price elasticity of demand and income elasticity of demand
What are the 3 types of elasticity?
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
If the elasticity of demand is equal to one then the demand is?
Unitary elasticity is when the price elasticity of demand is exactly equal to one.
What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
What is role of price elasticity of demand in business decision?
role of price elasticity of demand in managerial decisions
Distinguish between price elasticity and income elasticity?
The price elasticity refers to the change in demand due to the change in price. The income elasticity of demand on the other hand refers to the change in demand due to the change in income.
Are slope of demand curve and elasticity of a demand curve the same thing?
Not exactly. They serve the same purpose, but calulated a little bit differently. Slope equals change in price divided by change in quantity. Elasticity equals changes in quantity to be divided by changes in price
Income Elasticity of Supply and Demand?
The price elasticity of supply (or demand) is the percentage change in supply/demand for a one-percentage change in price. Eg, if the price elasticity is 1, a 1% change in the price of a good causes a 1% drop in price. (Note that elasticity is given in absolute value, since it is usually negative.)
What is a true statementregarding the price elasticity of demand?
Price elasticity of demand is positively correlated with the existence of substitute goods.
What is cross price elasticity?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
What is the point elasticity of at a price of 3 when the linear demand function is Q equals 24-2P?
-.333
