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1. Discuss the FIVE (5) responses of the price elasticity of demand. (5M) ​

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User Barnyr
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Answer:

Perfectly elastic, perfectly inelastic, relatively elastic, relatively inelastic, and unitary elastic demand.

Step-by-step explanation:

The FIVE (5) responses to the price elasticity of demand are:

1. Perfectly Elastic Demand:

When a small change in the price of a product causes a major change in its demand, it is said to be perfectly elastic demand.

2. Perfectly Inelastic Demand:

A perfectly inelastic demand is one when there is no change produced in the demand for a product with a change in its price.

3. Relatively Elastic Demand:

Relatively elastic demand refers to the demand when the proportionate change produced in demand is greater than the proportionate change in the price of a product.

4. Relatively Inelastic Demand:

Relatively inelastic demand is one when the percentage change produced in demand is less than the percentage change in the price of a product. price of a product.

5. Unitary Elastic Demand:

When the proportionate change in demand produces the same change in the price of the product, the demand is referred as unitary elastic demand.

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