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What do you understand by relatively elastic demand? Explain with the help of an example and a diagram.
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Show with the help of a diagram, the effect on equilibrium price and quantity when:i Demand is perfectly elastic and supply decreases.ii Supply is perfectly inelastic and demand increases.iii The demand curve
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![Solved] If price elasticity is equal to 1, then](https://storage.googleapis.com/tb-img/production/21/06/elasticc.png "Solved] If price elasticity is equal to 1, then")
Solved] If price elasticity is equal to 1, then
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Suppose supply of a good is perfectly elastic at a price of $5. The market demand curve for this good is linear, with zero quantity demanded at a price of $25. Given
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