ok...sry that i just remember that, hmmm....i dont understand
this part...
"Value Meaning n = 0 Perfectly inelastic. −1 < n < 0
Relatively inelastic. n = −1 Unit (or unitary) elastic. −∞ < n
< −1 Relatively elastic. n = −∞ Perfectly elastic."
&
if there is perfect elasticy, is it good or bad...
sry to ask so much basic questions, as i this is my first time
learning this...
Ask questions like this is ok... better than your first
attempt...
Whether perfect elasticity is good or bad depends on the
goals... Of course if you are the government, and you want to
increase taxes on certain products, you will choose very very price
inelastic materials like cigarettes to do so....
But for the consumers, perfect elasticity might be good because
it means most likely sellers wouldn't increase price as it would
lead to them being unable to sell the products...
Econs is common sense ;)
But then hor, you have to use this topic with market structures
to fully understand and appreciate it...
