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marysya [2.9K]
3 years ago
9

Make a distinction of the price elasticity of demand , in terms of elastic, unitary and inelastic.

Social Studies
1 answer:
qaws [65]3 years ago
8 0

Price elasticity is the measure of change in the demand of quantity to the price change.

<u>EXPLANATION: </u>

Price Elasticity can be divided as elastic, inelastic and unitary, depending on the relation between quantity and price.

Elastic demand: When the demand changes but is greater than the change in price, then the product is elasticity in nature. The goods that are not of basic necessity are usually elastic.

In-elastic demand: When the demand change is lower than the change in price, then the product is in inelastic demand. Products that are of basic necessity are inelastic ones.

Unitary demand: A product is in unitary demand when the price change doesn't change the product's demand. An example of Unitary demand is medicines.

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