Question

If the price of a good falls from $5 to $4, and the quantity demanded increases from 4 units to 5 units, the price elasticity of demand is:
A) elastic.
B) inelastic.
C) unit-elastic.
D) perfectly elastic.

Answer 1

The demand elasticity of prices is relatively elastic for price drops that raise quantity requested from two units to 3 units as the quantity demanded rises form 4 units to 5 units.

Why does elasticity occur?

When forces are applied, the atomic lattice in metals changes in size and shape (energy added to the system). The lattice returns to its initial lower energy state when forces are eliminated. The stretching the polymer chains whenever forces were applied is what gives rubbers as well as other polymers their elasticity.

What creates elasticity, and what produces it?

A body's elastic quality refers to its capacity to withstand any long-term changes brought on by stress. reasons for elasticity External force is one of the fundamental causes of elasticity. Additionally, elasticity

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