Elasticity of Demand
1. Elasticity of demand is the sensitivity of the customers to the change in price of a product.2. The degree of elasticity of demand is measured by the coefficient Ed which is Percentage Change in Quantity Demanded/Percentage Change in Price Percentage Change in Price = Change in Price/Original Proce * 100 a. If %change in Price is < %change in Quantity Demanded = Elastic b. If %change in Price is = infinite change in Quantity demanded = Perfectly Elastic c. If %change in Price is > %change in Quantity Demanded = Inelastic d. If %change in Price is = 0 Change in Quantity Demanded = Perfectly Inelastic e. If %change in Price is = %change in Quantity Demanded = Unit Elasticity Total Revnue = Unit Price * Quantity Sold. 1.If Price and Total Revenue Change inversely = Elastic 2.If Price and Total Revenue Change Directly =
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Some common words found in the essay are:
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Approximate Word count = 683
Approximate Pages = 3 (250 words per page double spaced)
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