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22 August, 17:12

Each month jessica buys exactly 15 big macs regardless of the price. jessica's price elasticity of demand for big macs is:

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  1. 22 August, 18:38
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    Price of elasticity of demand represents the measure of the change in the quantity demanded of a product in relation to its price change. The fact that Jessica buys each month exactly teh same quantity of the roduct (Big Mac) no matter what the price of the product ismeans that Jessica's price elasticity of demand for Big Macs is: 0.

    In this situation the price of the product does not affect the demand.
  2. 22 August, 20:02
    0
    Price elasticity of demand is a measure of the relation between consumer demand for a good and the price for that good. A higher elasticity value means that for each differential change in the price of that good, consumers will buy significantly more or less of the item. However, in this case, the consumer is buying the exact same amount of the product each month, regardless of the price. As such, an economist would say that Jessica's demand for Big Macs is completely inelastic; that is, the value of the price elasticity is zero.
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