The demand schedule for notebooks is given below
|Price of Notebook (Rs per notebook)||Quantity Demanded|
Calculate the price elasticity of demand and determine the type of price elasticity.
Q = 100
Therefore, a change in the price of notebooks is:
In the above calculation, the change in price shows a negative sign, which is ignored. This is because price and demand are inversely related which can yield a negative value of price (or demand). Similarly, a change in quantity demanded of notebooks is:
The price elasticity of demand for notebook is 0. Therefore, in such a case, the demand for notebook is perfectly inelastic.