Complete the following statement: When the percentage change in quantity demanded is more than the percentage change in price, the demand curve is ______.
When the percentage change in quantity demanded is more than the percentage change in price, the demand curve is flatter. Concept: Types of Price Elasticity of Demand Is there an error in this question or solution?
Calculating the Price Elasticity of Demand Figure 1: The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.
Price Elasticity of Supply Figure 2: The price elasticity of supply is calculated as the percentage change in quantity divided by the percentage change in price.
elastic demand when the elasticity of demand is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price elastic supply when the elasticity of either supply is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price elasticity an economics concept that measures responsiveness of one variable to changes in another variable inelastic demand when the elasticity of demand is less than one, indicating that a 1 percent increase in price paid by the consumer leads to less than a 1 percent change in purchases (and vice versa); this indicates a low responsiveness by consumers to price changes inelastic supply when the elasticity of supply is less than one, indicating that a 1 percent increase in price paid to the firm will result in a less than 1 percent increase in production by the firm; this indicates a low responsiveness of the firm to price increases (and vice versa if prices drop) price elasticity the relationship between the percent change in price resulting in a corresponding percentage change in the quantity demanded or supplied price elasticity of demand percentage change in the quantity demanded of a good or service divided the percentage change in price price elasticity of supply percentage change in the quantity supplied divided by the percentage change in price unitary elasticity when the calculated elasticity is equal to one indicating that a change in the price of the good or service results in a proportional change in the quantity demanded or supplied |