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Economics

Broadly discuss the measurements of price elasticity of demand.

Measurement of Price Elasticity of Demand:  There are 5 different measurements of Price Elasticity of Demand. They are as follows: Perfectly Inelastic Demand (Elasticity = 0) Perfectly Elastic Demand (Elasticity = Infinity) Unit Elasticity of Demand (Elasticity = 1) Relatively Inelastic Demand (Elasticity < 1) Relatively Elastic Demand (Elasticity > 1) These measurements has been …

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What is elasticity, elasticity of demand, elastic demand, and inelastic demand?

         Elasticity : In economics, elasticity is the ratio of the percentage change in one variable to the percentage change in another variable. Elasticity is a popular tool among empiricists because it is independent of units and thus simplifies the analysis. …  Elasticity of Demand : The demand of a commodity depends …

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Show the market demand for a commodity with example and explanation.

Market Demand For a Commodity : The market demand for a commodity means the total demand for a commodity made by all the individuals in the market. The market demand for a commodity gives the alternative amounts of a commodity demanded per time period, at various alternative prices, by all the individuals in the market. …

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Explain the law of negatively sloped demand curve.

Law of Negatively Sloped Demand Curve:             First, obtain the demand schedule; the formula is,                                                 Qdx = f(Px)             Considering, an individual demand function for a commodity X is given by,                                                 Qdx =8 – Px    cet.par.             Here, Qdx  is the quantity demanded and Px is the price …

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Draw and explain a demand curve by obtaining a demand schedule.

Obtaining Demand Schedule: To obtain the demand schedule the formula is,                                                 Qdx = f(Px) Considering, an individual demand function for a commodity X is given by,                                                 Qdx =8 – Px    cet.par. Here, Qdx  is the quantity demanded and Px is the price of X commodity. Now substituting various prices of X in …

Draw and explain a demand curve by obtaining a demand schedule. Read More »

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