Question

When the price elasticity of demand for a good is very inelastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____

Answer 1

When the price elasticity of demand for a good is very inelastic, the quantity demanded is higher than a change in price and the demand curve is relatively less than 1.

In general, the demand for a terrific is said to be inelastic (or quite inelastic) whilst the PED is less than one (in absolute fee): that is, changes in fee have a less than the proportional impact on the quantity of the good demanded.

Demand is taken into consideration inelastic while the elasticity is less than one, this means that the amount of actions is proportionately much less than the rate.

Alternatively, if the fee for an inelastic appropriate is elevated and the call does now not trade, the overall revenue increases because of the better fee and static amount demanded. However, the price will increase usually do cause a small lower in the quantity demanded.

Learn more about elasticity here: brainly.com/question/24384825

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