If quantity demanded remains almost unaffected by a per unit price change, demand is said to...

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

Solutions

Expert Solution

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 )

Rahul Sunny answered 1 year ago

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