how to find the price elasticity if the quantity demand is 2 and the product price...

how to find the price elasticity if the quantity demand is 2 and the product price is 9

Expert Solution

Price elasticity representse the ratio of percentage change in quantity demanded and percentage change in price .

A good is said to have a

(1) Highly elastic demand :

When e > 1 i.e. % change in quantity demanded is greater than % change in price.

(2) Less elastic demand :

When e < 1 i.e % change in quantity demanded is less than % change in price.

(3) Unitary elastic demand

When e = 1, i.e. % change in quantity demanded is equal to % change in price.

Here as we can see that we have quantity demand as 2 and product price is $9 . To calculate the percentage change in quantity demand and price , we need atleast two prices and corresponding change of quantity with respect to other price . So here we only have one price (i.e $9) and quantity (i.e 2 units) . Hence it is impossible to calculate the elasticity of demand in this case .

Rahul Sunny answered 2 years ago

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