ELASTICITIES OF
DEMAND
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community
Ask the community for help and clear up your study doubts
University Rankings
Discover the best universities in your country according to Docsity users
Free resources
Our save-the-student-ebooks!
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Elasticities of Demand, Lecture notes of Introduction to Macroeconomics
Get to know more what are the elasticities of demand and discover what macroeconomic components are.
Typology: Lecture notes
2018/2019
1 / 15
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download Elasticities of Demand and more Lecture notes Introduction to Macroeconomics in PDF only on Docsity!
ELASTICITIES OF
DEMAND
INELASTIC DEMAND
- (^) Ep=<
- (^) Percentage change in demand is less than percentage change in price of a commodity.
- (^) It’s curve slopes downward and is steeper in nature
- (^) For example: 5% change in demand with a 10% change in price of commodity.
UNITARY ELASTIC
DEMAND
- (^) Ep=
- (^) Percentage change in demand is equal than percentage change in price of a commodity.
- (^) It’s curve divides two parts equally
- (^) It is found in case of normal goods
- (^) For example: 10% change in demand with a 10% change in price of
PERFECTLY INELASTIC
DEMAND
- (^) Percentage demand does not change with any change in percentage in price
- (^) Infinite change in quantity demanded
- (^) It’s curve is vertical at market price.
- (^) Example : demand for medicine, emergency services