There are 5 types of price elasticity of demand.1. Perfectly elastic demand / infinity elasticity -value of elasticity goes to ∞( Ep=∞)2. Elastic demand- value of elasticity is greater than 1 ( (Ep>1) 3. Unit elastic demand - value of elasticity is equal to 1 ( Ep=1)4. Inelastic demand - value of elasticity is less than 1 ( Ep<1)5. Totally ...
In economics, variables are the attributes that can be measured or quantified. Value of any variable may change. Price level, interest rate, profit, output(GDP) are few examples for the variables in economics. Variables can be distinguished in to two types. They are, 1. Independent Variable2. Dependent VariableIndependent Variable is an variable of which its value change freely. The change in ...
When there is a functional relationship between two variables we can measure a value for the Concept of Elasticity. In order to do this we need values for two variables -the independent variable and the dependent variable. By measuring elasticity we find the responsive change in the dependent variable to a change in the independent variable. In other words, when ...
