Economics Supply And Demand Questions
The different types of price elasticity of demand are:
1. Perfectly elastic demand: This occurs when a small change in price leads to an infinite change in quantity demanded. The demand curve is horizontal.
2. Perfectly inelastic demand: This occurs when a change in price has no effect on the quantity demanded. The demand curve is vertical.
3. Relatively elastic demand: This occurs when a small change in price leads to a proportionately larger change in quantity demanded. The demand curve is relatively flat.
4. Relatively inelastic demand: This occurs when a change in price has a proportionately smaller change in quantity demanded. The demand curve is relatively steep.
5. Unitary elastic demand: This occurs when a change in price leads to an equal proportionate change in quantity demanded. The demand curve has a constant slope.