Definition:Elastic demand is an economic concept that occurs when the quantity of a product responds intensively to a change in the price of the product. What Does Elastic Demand Mean? Contents[show] What is the definition of elastic demand?According to thelaw of demand, when the price of a...
b. an increase in price would decrease total revenue because the decrease in quantity demanded is greater than the increase in price.c. adecrease in price would decrease total revenue because the increase in quantity demanded is smaller than the decrease in price....
Demand is elastic if the value of the price elasticity of demand is greater than 1 (in absolute terms). Under this circumstance, the percentage change...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our exper...
An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. If the formula creates an absolute value greater than 1, the demand is elastic....
In this case, the demand was elastic because the value was greater than 1. In other words, the more Tom raises prices, the less his customers are willing to purchase. Tom has to figure out where the sweet spot is between raising prices and losing customers to maximize profits....
Elastic demand: The elasticity coefficient is greater than one. Perfectly elastic demand: The elasticity coefficient is equal to infinity. This generally occurs if you divide any number by 0. Perfectly inelastic demand: The elasticity coefficient is equal to zero. ...
3.If the elasticity is greater than 1, is demand elastic or inelastic? If the elasticity equals 0, is demand perfectly elastic or perfectly inelastic?弹性大于1，需求富有弹性。弹性等于0，需求完全无弹性。4.On a supply-and-demand diagram, show equilibrium price, equilibrium quantity, and the ...
If the demand function for a particular good is Q = 20 - 8P, then demand at a price of $1 is (Select one): a. elastic. b. unit elastic. c. inelastic. d. The elasticity cannot be determined. When price elasticity of dema...
demand. For example, if a 5% increase in the price of a streaming service caused a 10% decrease in subscribers, it would be considered relatively elastic. Most products and services fall into this zone. Relatively inelastic demand has a PED greater than one. Higher values indicate greater ...
TYPE: M SECTION: 3 DIFFICULTY: 1 6.Demand is said to be elastic if a.the price of the good responds substantially to changes in demand. b.demand shifts substantially when the price of the good changes. c.buyers do not respond much to changes in the price of the good. d.the quantity...