In: Economics
If quantity demanded remains almost unaffected by a per unit price change, demand is said to be:
a. Inelastic
b. Elastic
c. Kinked
d. Fixed
elasticity of demand = percentage change in quantity demanded / percentage change in price
if the price changes but quantity is unaffected or changes by a little elasticity of demand is inelastic as percentage change in quantity demanded < percentage change in price and elasticity of demand will be less than 1 (numerator is less than denominator)
note:if elasticity of demand >1 (elastic)
if elasticity of demand < 1 (inelastic)
if elasticity of demand = (unit elastic of fixed )