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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
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when the elasticity coefficient is equal to negative one, demand is said to be [...]

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
when the elasticity coefficient is equal to negative one, demand is said to be [...]
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Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
when the elasticity coefficient is equal to negative one, demand is said to be [...]
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when the elasticity coefficient is equal to negative one, demand is said to be unit elastic , or unitary elastic

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4.1. Own-Price Elasticity of Demand
. To be precise, when the magnitude(ignoring algebraic sign) of the own-price elasticity coefficient has a value less than one, demand is defined to be inelastic. When that magnitude is greater than one, demand is defined to be elastic . And <span>when the elasticity coefficient is equal to negative one, demand is said to be unit elastic , or unitary elastic . Note that if the law of demand holds, own-price elasticity of demand will always be negative, because a rise in price will be associated with a fall in quantity demanded, but it can b

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