Respuesta :
The critical cutoff point is typically taken to be minus one, with values less than one being inelastic and those larger than one being elastic.
When demand is inelastic, how does it act?
Economics terms like "inelastic" are used to describe situations in which a good or service's quantity is fixed but its price changes. This is what is meant by inelastic demand: as prices rise, customers' purchasing patterns essentially remain the same, and when prices fall, those patterns also remain the same.
Why is demand that is inelastic desirable?
Price inelasticity should be taken into account by business owners when creating their pricing strategy because it provides a number of benefits. Price inelasticity allows firms additional pricing flexibility since whether prices increase or drop, the change in demand is essentially the same.
Rigid demand: is it good or bad?
Elastic products are usually required when appropriate substitutes are not accessible. The three things with the most widespread inelastic demand are utilities, prescription drugs, and tobacco products. Despite price changes, there will always be a market for certain things, therefore companies that sell them can be more flexible with pricing.
Learn more about inelastic demand: https://brainly.com/question/3407235
#SPJ4
