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Question 7 (2 points) Given the current economic situation created by the pandemic, would you assume...


Question 7 (2 points) Given the current economic situation created by the pandemic, would you assume that bottled water is mo
Question 7 (2 points) Given the current economic situation created by the pandemic, would you assume that bottled water is more elastic or inelastic? Briefly explain. Lection 8 (1 point)
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  • Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.

  • Elasticity can be described as elastic—or very responsive—unit elastic, or inelastic—not very responsive.

  • Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.

  • An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.

As in today's scenario , bottled water has become the real more demandable good.In such senario , if the price of water bottle will rise , quantity will rise more than change in price . Because without water no one is able to live .So quantity will rise , more than price. Hence demand is elastic or it can may be perfect eleastic, as percentage change in demand will definately rise if there is nor change in percentage of price .

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