Price elasticity of demand for the two Goods X and Y are zero and (-) 1 respectively. Which of the two is more elastic and why?
Price elasticity of demand for the two Goods X and Y are zero and (-) 1 respectively. Which of the two is more elastic and why?
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Y is more elastic than X because one Per cent change in price of Good Y leads to one per cent change in quantity demanded while one per cent change in Good X has no effect on demand of Good X.
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