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Ilia_Sergeevich [38]
3 years ago
9

Define price elasticity of demand. Explain the difference between elastic demand and inelastic demand.

History
1 answer:
lina2011 [118]3 years ago
8 0

<em>Price Elasticity of demand </em>is the difference in quantity demanded compared to difference in price. <em>Elastic demand</em> is given change in price causes relatively larger change in the quantity demanded. <em>Non-Elastic demand</em> is given change in price causes relatively smaller change in the quantity demanded.

<em>One can have a strong effect on the demand curve while the other has a lesser effect!</em>

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