Question 2

Price elasticity is used by economists to understand how supply or demand changes given changes in price to understand the workings of the real economy.

Price elasticity of demand can take more than one form. It can be elastic, inelastic or unitary.

2.1Critically discuss elastic, inelastic and unitary conditions/forms of price elasticity of demand through the use of practical examples and graphs.[45]

*Note: graphs should be in line with the given practical examples.