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| Economics help please? It is Valentine's Day and Fred is desperately searching all over town for a dozen roses to give to Diane. "I'll pay anything for a dozen roses," he says. Whether he really means it or not, the statement implies that his price elasticity of demand for roses is a. Infinite b. Negative c. One d. greater than one e. Zero im guessing its either negative or zero please help im confused. |
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| In economics and business studies, the price elasticity of demand (PED) is an elasticity that measures the nature and degree of the relationship between changes in quantity demanded of a good and changes in its price. Value Meaning n = 0 Perfectly inelastic. 0 < n < 1 Relatively inelastic. n = 1 Unitary elastic. 1 < n < ? Relatively elastic. n = ? Perfectly elastic. Example: Demand for an antibiotic becomes highly inelastic when it alone can kill an infection resistant to all other antibiotics. Rather than die of an infection, patients will generally be willing to pay whatever is necessary to acquire enough of the antibiotic to kill the infection. Hope this helps... |
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