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If the Elasticity of Demand Were Positive What Would This

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Essay

If the elasticity of demand were positive what would this imply about the shape of the demand curve? Why is it that we are unlikely to find a price elasticity of demand with a positive value?


Definitions:

New Markets

Market segments or geographical areas that were previously unexplored or underexploited by a business or industry.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly as its price changes.

Price Elasticity of Demand

An index showing the extent to which demand for a product changes in reaction to a variation in its price, where an elasticity exceeding one signifies a strong response.

Determinants

Factors or elements that contribute to producing a particular result or outcome.

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