In interpreting the ed value as either elastic or inelastic, we look at the:

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15-03-2019
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In interpreting the ed value as either elastic or inelastic, we look at the:

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MrsTriplet MrsTriplet · Answer 1 · 2019-03-26T20:21:50+01:00

In interpreting the ed value as either elastic or inelastic, we look at the absolute value of the Ed coefficent.

Inelastic demand and elastic demand are two ways to determine value and desire of an item for a consumer. Elastic demand is when a slight change in the price can drastically change the demand for a product. Inelastic demand is not as sensitive to minor price changes and has little or no effect on the demand of a given item.