Respuesta :

Answer:

Price Elasticity of Demand is high , when demand is more adjustible to price change. Detailed cases are mentioned below

Explanation:

Price Elasticity of Demand [P.Ed] is responsive change in demand, due to change in price.

  • Value of P.Ed is more, demand is Elastic : It means demand responds more to price change.
  • Value of P.Ed is less, demand is Inelastic : It means demand responds less to price change.

P.Ed is high (demand elastic) : In cases when -

  • Demand is not of urgent nature
  • There is more time to adjust demand as per price
  • There are more substitutes available
  • Good commands more share in total expenditure
  • Income of consumer is less

The demand of the price elasticity of demand should be more at the time when the good should be considered as luxury and it should be opposed to the necessity.

The following information regarding the price elasticity of demand:

  • It determines the sensitivity of quantity demanded as per the price changes.
  • The demand should be elastic when the goods are luxuries.
  • The demand should be inelastic when the goods should be necessities.

So, we can conclude that the demand of the price elasticity of demand should be more at the time when the good should be considered as luxury and it should be opposed to the necessity.

Learn more about the price elasticity of demand here: brainly.com/question/15313354

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