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| 1. |
Price elasticity of demand for flowers and toys are respectively (-) 0.9 and (-) 0.5. Demand for which one is more elastic and why ? |
| Answer» SOLUTION :DEMAND for flowers is more elastic as with 1% fall in price of flowers. Its demand RISES by 0.9 %. However, in case of toys, 1% fall in price RAISES the demand by just 0.5%. | |