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And finally in the extreme case of a perfectly inelastic (vertical) supply curve, an increase in demand causes no change in quantity sold; the price simply rises.
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Price elasticity of demand measures changes in the quantity demanded when prices change. Some goods are very elastic and others are very inelastic...
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And finally in the extreme case of a perfectly inelastic (vertical) supply curve, an increase in demand causes no change in quantity sold; the price simply rises.
Q.3
Price elasticity of demand measures changes in the quantity demanded when prices change. Some goods are very elastic and others are very inelastic...
Essay fragment
General points of the essay
supply, demand, and price change
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