His employing i dont know just guess and hope you get it right
Elastic.
This is
the formula for elasticity:
Elasticity
= (Quantity variation/Quantity)/(Price variation/Price)
Inelastic
demand is the one in which a variation in price doesn’t lead to an important
variation in the quantity bought by consumers. So, in the formula, numerator is
much smaller than denominator, so the fraction is lower than 1. That happens
with necessary goods (typically, food).
On the
contrary, elastic demand is the one in which a variation in the price leads to
an important variation in the quantity bought by consumers, and that means the
fraction is higher than 1. So if I sell the product at a lower price, I will
sell much more product.
Considering the formula:
R = P*Q, when demand is elastic,
I will
have much more sold quantity with just a little lower price, which leads to a higher
revenue.
Answer: The two parts of demand are:
• Willingness to buy
• Ability to pay
Explanation:
Demand simply refers to the amount of the goods and services which the buyers want to purchase at a certain price for a particular period of time.
There are two parts of demand which are the willingness of a buyer to purchase a certain good and also the ability to pay by the person.
