144k views
2 votes
Price Elasticity of Demand

A. Elastic
B. Inelastic
C. Unitary
D. Perfectly Elastic

User Arty
by
8.2k points

1 Answer

3 votes

Final answer:

Price elasticity of demand can be classified as elastic, inelastic, or unitary based on its responsiveness to changes in price.

Step-by-step explanation:

The three broad categories of price elasticity of demand are elastic, inelastic, and unitary. An elastic demand is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. In contrast, an inelastic demand is one in which the elasticity is less than one, indicating low responsiveness to price changes. Finally, a unitary demand refers to proportional responsiveness of demand to price changes.

User Tryke
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories