Price Elasticity of Demand
Price Elasticity of Demand
Price Elasticity of Demand
Where:
%∆ in P = Percentage Change in Price. This is the New Price minus the Old
Price divided by the Old Price.
5 Types of Price Elasticity of Demand
The price elasticity of demand for water is inelastic demand. A factor that water
makes it inelastic is that it is a necessity. When you say a product is inelastic,
there is a very slight change of quantity demanded when the price of the
product increases. For example, if the prices of water rise, a lot of people will
still buy it despite the raising of the price.