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in Economics by (106k points)

When price of a good is Rs.7 per unit, a consumer buys 12 units. When price falls to Rs.6 per unit, he spends Rs.72 on the good. Calculate price elasticity of demand by using percentage method. Comment on the likely shape of demand curve based on this measure of elasticity.

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Demand curve in this case will be a vertical straight line parallel to y axis. It will be perfectly inelastic demand.

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