Richa was buying a can of Pepsi and suddenly came across a thought that what elasticity does this commodity has? |
Perfectly elastic demand Perfectly inelastic demand Neither elastic nor inelastic demand Elastic demand |
Elastic demand |
Price elasticity measures the degree of responsiveness of a commodity to change in price. As, pepsi has close substitutes available it can be said that the demand would be elastic. Elastic demand of a commodity indicates that a change in price results in a large change in quantity demanded. |