Pin It. View Slideshow Â»Â». Fun in the sun! Celebrity trainer Jillian Michaels and her partner Heidi Rhoades hit the beach with their two children â daughter Lukensia, 3, and 18-month-old son Phoenix â in Miami, Florida on Tuesday (November 12).
Elasticity is the ratio of the % change in quantity to the % change in price. So if the two are identical, than it is said to be unitary elastic. If quantity changes more than price, then it is said to be elastic. If the quantity changes less than price, then it is said to be inelastic.
Inelastic demand is when the quantity demanded rises by a lower percent than the price drops. For example, if the quantity rose 2 percent when the price fell 5 percent. That ratio is .02/.05 = .40, or less than one. Unit elastic demand is when the quantity demanded changes the same percent as the change in price.