Look at the three graphs below and select the graph that shows a perfectly inelastic demand Is it 1, 2, or 3? Graphs Showing Elasticity of Demand Economists define "elasticity" as the change in Quantity Demanded relative to the change in Price. There are three primary categories or degrees ...
When demand is perfectly inelastic with respect to price, the demand curve is horizontal. True or false? True or false? If the demand curve for a good is a steep, straight line, then the demand for the good is inelastic at every point along that demand curve. True or fals...
If the formula creates an absolute value greater than 1, the demand is elastic. How do you tell if a graph is elastic or inelastic? If a demand curve is perfectly vertical (up and down) then we say it is perfectly inelastic. If the curve is not steep, but instead is shallow, then ...
When plotted on a graph with the Y-axis depicting the price points and the X-axis depicting the quantity points, the demand curve will take a perpendicular course, parallel to the price line with the quantity remaining fixed all along (see illustration on top right corner). This shows that...
When one studies demand and supply curves on a graph and the law of supply and demand, the demand curve goes from left to right and the supply curve goes from right to left. The X-axis denotes the quantity of a good or a service and the Y-axis denotes the price. The point at whic...
Whenonestudiesdemandandsupplycurvesonagraphandthelawofsupplyanddemand,thedemandcurvegoesfromlefttorightandthesupplycurvegoesfromrighttoleft.TheX-axisdenotesthequantityofagoodoraserviceandtheY-axisdenotestheprice.ThepointatwhichthedemandcurveandthesupplycurvemeetisknownasthePointofEquilibrium,andthisdenotestheamount...
How do you tell if a graph is elastic or inelastic? If a demand curve is perfectly vertical (up and down) then we say it isperfectly inelastic. If the curve is not steep, but instead is shallow, then the good is said to be “elastic” or “highly elastic.” This means that a sma...
False. The demand curve for a perfectly competitive firm is horizontal or perfectly elastic and not vertical. See the graph below. The flat demand...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your t...
Learn what price elasticity is. Discover how to find price elasticity of demand, study examples of price elasticity, and examine a price elasticity graph. Related to this Question A product with an inelastic demand means what? What does it mean if the demand curve has a fixed ela...
Answer to: If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to?...