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3 years ago

Decide whether you agree or

Business

1 answer:

Leona [35]3 years ago

3 0

Answer:

A. Disagree

B. Disagree

C. Disagree

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic if a small change in price leads to a greater change in quantity demanded. The absolute value of elastic demand is usually greater than 1.

Demand is inelastic if a small change in price has little or no effect on the quantity demanded. The absolute value of inelastic demand is usually less than 1.

Demand is unitary, if a change in price has the same proportional effect on quantity demanded. The absolute value of unitary elasticity of demand is equal to 1.

The absolute value of elasticity for cocaine is 0.2 which indicates that it has an inelastic demand, if price increases, there would be no change in the quantity demanded. Amount spent on cociaine would increase and producers revenue would rise.

The absolute value of elasticity for Christmas three is 1.3 which indicates that it has an elastic demand. If price falls, the quantity demanded would rise and revenue earned by sellers would rise as a result.

When elasticity of demand is unitary, an increase in price leads to the same proportional increase in revenue.

I hope my answer helps you

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