price elasticity of demand

WHAT IS ELASTIC

(a)  

PERFECTLY ELASTIC DEMAND

• Perfectly elastic demand is characterized by a steep demand curve.
• Perfectly elastic demand means quantity demanded does not change with price changes.
• Perfectly elastic demand is represented by a horizontal demand curve.
• Perfectly elastic demand is represented by a vertical demand curve.

PRICE ELASTICITY OF DEMAND IS

• the responsiveness of change in quantity demanded to price changes

• the average price of goods sold
• the total revenue generated from sales
• the measure of consumer income

curve of perfectly elastic demand

• The curve of perfectly elastic demand is a vertical line.
• The curve of perfectly elastic demand is a horizontal line.
• The curve of perfectly elastic demand is a downward sloping line.
• The curve of perfectly elastic demand is a U-shaped curve.

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curve of relative elastic demand

• The curve of relative elastic demand is upward sloping and steeper.
• The curve of relative elastic demand is vertical and constant.
• The curve of relative elastic demand is horizontal and perfectly inelastic.
• The curve of relative elastic demand is downward sloping and flatter.

meaning of relative elastic demand

• Relative elastic demand refers to the demand for a product that remains constant regardless of price changes.
• Relative elastic demand is when the demand for a product increases with a decrease in its own price.
• Relative elastic demand means that the demand for a product is unaffected by the prices of complementary goods.
• percentage change in qty demand is more than percentage change in price

curve of relative inelastic demand is

(a)