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When the percentage change in price is greater than the percentage change in quantity demand?
The price elasticity of supply is given by a similar formula: If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
When the percentage change in a product price is greater than the percentage change in quantity supplied How do we describe that supply elasticity?
A price elasticity supply greater than one means supply is relatively elastic, where the quantity supplied changes by a larger percentage than the price change.
When the percentage change in quantity demanded is greater than the percentage change in price of the commodity the demand for the commodity is said to be?
Own-Price Elasticity
If the percent change in the quantity demanded is greater than the percent change in the price of a good, demand is said to be price elastic or more responsive to price changes. (Example: A 1-percent change in price induces a change in quantity demanded by more than 1 percent.)
When the percentage change in the quantity demanded is greater than the percentage change in price then price elasticity of demand is quizlet?
Demand is elastic when the percentage change in quantity demanded is greater than the percentage change in price, So the price elasticity is greater than 1 in absolute value.