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What will be the price elasticity of demand of the points A, B, L and K in the diagram given below: |
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Answer» At point ‘A’, the elasticity of demand will be, The lower segment of the line/upper segment of line = AK/0 = ∞ At point ‘B’ = BK/AB > 1 i.e. ed > 1 At point ‘L’ = LK /AK < 1 i.e. ed < 1 At point ‘K’ = 0/AK = 0 i.e. ed = 0 |
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