Explore BrainMass

Price elasticity of demand

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Describe the price elasticity of demand for a resource. Why is it important and what is it used for?

© BrainMass Inc. brainmass.com March 21, 2019, 8:05 pm ad1c9bdddf

Solution Preview

Price elasticity of demand (hereafter ped) describes the responsiveness for prices changes of a particular good/service. It is measure from 0 to -infinity. A ped between -1 to 0 is known as inelastic and this means that less responsive to price changes (0 is the extreme end, known as perfect inelastic and it means that consumers will not change the amount they purchase no ...

Solution Summary

This solution describes the price elasticity of demand for a resource.