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Used as a measure of the responsiveness of demand to changes in the commodities of price.Types of Price elasticity If ep=0; the demand is perfectly inelasticIf ep=1; the demand has unitary elasticIf ep=∞; the demand is perfectly elasticIf 0<e<1; the demand is inelasticIf 1<e<∞; the demand is elastic

Used as a measure of the responsiveness of demand to changes in the commodities of price.

Types of Price elasticity

If ep=0; the demand is perfectly inelastic

If ep=1; the demand has unitary elastic

If ep=∞; the demand is perfectly elastic

If 0<e<1; the demand is inelastic

If 1<e<∞; the demand is elastic

It is defined as the proportionate change in the quantity demanded resulting from a proportionate change in income.Ey= dQ/dY X Y/Q

It is defined as the proportionate change in the quantity demanded resulting from a proportionate change in income.

Ey= dQ/dY X Y/Q

It is defined as the proportionate change in the quantity demanded of ‘X’ resulting from a proportionate change in the price of ‘Y”.Exy=dQx/dPy. Py/Qx

It is defined as the proportionate change in the quantity demanded of ‘X’ resulting from a proportionate change in the price of ‘Y”.

Exy=dQx/dPy. Py/Qx

There are basically four ways by which we can measure price elasticity of demand. These methods arePercentage methodTotal outlay methodPoint methodArc method

There are basically four ways by which we can measure price elasticity of demand. These methods are

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