5/30/2023 0 Comments Iunit elastic![]() Obviously, no other point can have unitary elasticity here. So $ = $, which implies that the point of unitary elasticity $C$ is the midpoint of the demand line. Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price. But this implies that the triangles $$ and $$ have two of their sides equal, so necessarily they will have also their third side equal. ![]() The length $$ is equal to the length $$, and the length $$ is equal to the length $$. As previously discussed, unit elastic demand refers to the direct relationship between the cost of a product or service and the demand for it by consumers. The concept of unit elastic is closely related to elasticity, which is a fundamental concept in economics. So at unitary elasticity the corresponding price lies in the middle of the feasible price domain, and the corresponding quantity lies in the middle of the feasible quantity domain. Unit elastic (also known as unitary elastic) is a term used in economics to describe a situation in which a change in one variable causes an equally proportional change in another variable. For unitary elasticity (in absolute terms) we want The demand line will cross the vertical $p$-axis at $p=a/b$ and the horizontal $q$ axis at $q=a$. ![]() When the demand function is linear, $q = a-bp$, the only point were elasticity is unity is located in the midpoint of the demand curve (straight line).
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