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8 June, 10:03

The price elasticity of demand is given by this equation: Price Elasticity of Demand equals StartFraction percentage change in the quantity demanded Over percentage change in price EndFractionPrice Elasticity of Demand=percentage change in the quantity demandedpercentage change in price When you are using this equation, what does it mean when you obtain a zero in the numerator?

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  1. 8 June, 10:34
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    Answer: It means that the demand is totally inelastic.

    Explanation:

    We talk abaout inlestic demand when a change in the price does not change at all the amount consumed, nor when a price is reduced neither when is rised.

    A traditional example of inelastic goods is water, since it is necessary to live and no matter how much its price increases we will not stop consuming it.
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