Explain in brief, the following kinds of price elasticities of demand: (i) Highly elastic demand, (ii) Less Elastic Demand, (iii) Unitary elastic demand.

Explain in brief, the following kinds of price elasticities of demand:

1.	Explain in brief, the following kinds of price elasticities of demand: (i) Highly elastic demand, (ii) Less Elastic Demand, (iii) Unitary elastic demand.
Answer» Solution :1. High elastic demandDemand is said to be high elastic when even a small change in the PRICE of a commodity leads to a considerable extension/contraction of the amount DEMANDED of it.2. Low elastic demandWhen even a substantial change in price BRINGS only a small extension/contraction in demand, it is said to be less elastic.3.Unitary elastic demandWhen a small change in price of a product causes a major change in its demand, it is said to be perfectly elastic demand. In perfectly elastic demand, a small RISE in price results in fall in demand to zero, while a small fall in price causes increase in demand to infinity. In such a case, the demand is perfectly elastic or ep = 00.