Respuesta :
Answer:
Price elasticity of demand for Adam=0
Price elasticity of demand for Barb=1
Explanation:
Price elasticity of demand = %age change in demanded QTY / %age change in demanded price
The price is not important for Adam, and he demands a fixed quantity, hence his demand curve is vertical. A perfectly vertical demand curve is can inelastic demand curve and has price elasticity =0
The quantity is not important for Barb, and he demands a fixed price, hence his demand curve is horizontal. A perfectly horizontal demand curve is has price elasticity =1
Adam's elasticity of demand is 0. Barb's elasticity of demand is 1.
Price elasticity of demand measures how the quantity demanded changes in response to changes in the price of a good.
Price elasticity of demand = percentage change in the quantity demand / percentage change in price
Types of price elasticity of demand
- Perfectly inelastic demand: demand is perfectly inelastic if the quantity demanded does not depend on the price of the good. The quantity demanded remains the same regardless of the price of the good. The coefficient of elasticity is 0. Adam does not consider the price of the good when he decides to buy 10 tickets. This means that his demand is perfectly inelastic.
- Unit elastic demand; demand is unit elastic if quantity demanded and price change by the same percentage. The coefficient of elasticity is 1.
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