Sort the following statements by the price elasticity of dem

Sort the following statements by the price elasticity of demand indicated: elastic, inelastic, or unit elastic.

Solution

Explanation:-

One method of measuring Price Elasticity of Demand in Percentage Method. Under this method, the price elasticity of demand is calculated as follows:-

Elasticity of Demand (e_d) = % change in quantity demanded / % change in price

If the result of this formula is greater than 1, then Demand is elastic and If the result of this formula is less than 1, then Demand is inelastic and If the result of this formula is equal to 1, then Demand is Unit elastic.

Particulars	Price Elasticity of Demand
1) When Cowboy Blues lowers the price of their blue jeans by 59 %, the number of jeans sold increases by 25 % [(25 / 59) = 0.42 < 1 ]	Inelastic
2) When Cowboy Blues lowers the price of their blue jeans by 35 %, the number of jeans sold increases by 49 % [49/35 = 1.4 > 1 ]	Elastic
3) When Cowboy Blues lowers the price of their blue jeans by 19 %, the number of jeans sold increases by 19 % [19/19 = 1 ]	Unit elastic
4) When Cowboy Blues raises the price of their blue jeans by 42 %, the number of jeans sold decreases by 65 % [65/42 = 1.55 > 1 ]	Elastic
2) When Cowboy Blues lowers the price of their blue jeans by 21 %, the number of jeans sold increases by 15 % [15/21 = 0.71 > 1 ]	Inelastic