In this article we will discuss about the formula and equation for calculating the price elasticity of demand explained with the help of examples. According to the law of demand as the (own) price of a good decreases or increases, the quantity demanded of it would, respectively, increase or decrease. The capacity of demand for a good to increase or [...]
In this article we will discuss about the perfectly elastic and imperfectly inelastic demand for a good, explained with the help of diagrams. If, in spite of a change in the price (p) of a good, its quantity demanded (q) does not change at all, then it is said that the demand for the good is perfectly inelastic w.r.t. price. [...]
In this article we will discuss about the geometrical measurement of price-elasticity of demand. Case # 1. Value of e in the Case of Curvilinear Demand Curve: The geometrical measurement of price-elasticity of demand at any particular point on a curvilinear demand curve can be obtained with the help of Fig. 2.5. Suppose that the curve DD in this figure [...]