3. Elastic, inelastic, and unit-elastic demand The following graph shows the dem

Question

3. Elastic, inelastic, and unit-elastic demand The following graph shows the demand for a good 80-t 140??? Lt Demand QUANTITY (Units) For each region on the graph given in the following table, use the elesticity formule to identify whether the demand for this good is elastic (approximately) unit elastic, or inelastic Elastic Inelastic Unit Elastic Between X andY Between Y and Z Between W and X True or Faise: The value of the price elasticity of demand is not equal to the slope of the demand curve. True Faise O Type here to search

Explanation / Answer

Elasticity of demand at middle of demand curve is unity

Elasticity of demand at upper portion is elastic

Elasticity of demand at lower portion is inelastic.

Thus:

Between X and Y : Elastic.

Between Y and Z : Inelastic

Between W and X = Elastic.

This is True statement: Slope of demand curve and elasticity are not same.

slope of demand curve measures absolute change in quantity and price

Elasticity of demand measures relative change in Quantity and price. Both are related to each other but not same.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.