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  • XI Economics Notes - Price Elasticity of Demand

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    KAPIL JAIN
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    1. This document discusses methods for measuring the price elasticity of demand, which is calculated as the percentage change in quantity demanded divided by the percentage change in price. 2. The percentage change method directly calculates elasticity from the proportional changes in quantity and price. The expenditure method finds elasticity by observing whether total expenditure changes when price changes. 3. Perfectly elastic demand occurs when an infinitesimal price change leads to an infinite change in quantity demanded, resulting in a horizontal demand curve. Perfectly inelastic demand results in a vertical demand curve with no change in quantity despite a price change.

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    XI Economics Notes- Price Elasticity of Demand

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    1. This document discusses methods for measuring the price elasticity of demand, which is calculated as the percentage change in quantity demanded divided by the percentage change in price. 2. The percentage change method directly calculates elasticity from the proportional changes in quantity and price. The expenditure method finds elasticity by observing whether total expenditure changes when price changes. 3. Perfectly elastic demand occurs when an infinitesimal price change leads to an infinite change in quantity demanded, resulting in a horizontal demand curve. Perfectly inelastic demand results in a vertical demand curve with no change in quantity despite a price change.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    11 views8 pages

    XI Economics Notes - Price Elasticity of Demand

    Uploaded by

    KAPIL JAIN
    1. This document discusses methods for measuring the price elasticity of demand, which is calculated as the percentage change in quantity demanded divided by the percentage change in price. 2. The percentage change method directly calculates elasticity from the proportional changes in quantity and price. The expenditure method finds elasticity by observing whether total expenditure changes when price changes. 3. Perfectly elastic demand occurs when an infinitesimal price change leads to an infinite change in quantity demanded, resulting in a horizontal demand curve. Perfectly inelastic demand results in a vertical demand curve with no change in quantity despite a price change.

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    © All Rights Reserved
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    of 8

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    waAlfned Maahal/wha inul wed


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