MEASUREMENT OF PRICE ELASTICITY OF DEMAND
Uses Of Price Elasticity of Demand In Decision Making
1. 2. 3. 4.
To the businessmen To the trade unions In international trade To the government
5. In the determination of the rate of foreign exchange 6. In the declaring certain industries as public utilities
Different Degrees of Price Elasticity of Demand
1. 2. 3. 4. 5.
Perfectly Elastic Demand Perfectly Inelastic Demand Relatively Elastic demand Relatively Inelastic De