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प्रश्न
Demand for the commodity having multiple uses has elastic demand.
Give reasons or explain the following
Demand for the commodity having multiple uses is elastic.
उत्तर १
Demand for a commodity which satisfies different kinds of uses has more elastic demand. Such good which satisfies various wants at a single time is said to be composite goods. For instance, electricity for domestic purpose is composite demand as it is used for various purposes. The demand for such commodities is elastic.
उत्तर २
Demand for the commodity having multiple uses is elastic demand because the demand for a particular commodity which can be used in a variety of ways will be more affected by the changes in price.
* A commodity is said to have elastic demand if it is sensitive to the changes in price. The higher the change, the higher is the elasticity.
* A commodity having a single use or a number of substitutes will have less elasticity in demand due to the same reason.
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संबंधित प्रश्न
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an elasticity of demand : (choose the correct alternative)
(a) remains unchanged
(b) goes on falling
(c) goes on rising
(d) falls initially then rises
When the price of a commodity X falls by 10 percent. Its demand rises from 150 units to 180
units. Calculate is price elasticity of demand. How much should be the percentage fall in its
price so that its demand rises from 150 to 210 units?
When the price of good rise from Rs 10 per unit to Rs 12 per unit, its quantity demanded falls by 20 percent. Calculate its price elasticity of demand. How much would be the percentage change in its quantity demanded, if the price rises from Rs 10 per unit to Rs 13 per unit?
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A consumer spends Rs 100 on a good priced at Rs 4 per unit. When price rises by 50 percent, the consumer continues to spend Rs 100 on the good. Calculate the price elasticity of demand by percentage method
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Unitary elastic demand.
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Fill in the blanks with appropriate alternatives given in the bracket.
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Consider the demand curve D(p) = 10 − 3p. What is the elasticity at price `5/3` ?
The demand for salt is ______.
Fill in the blank with appropriate alternatives given below:
Income elasticity of demand for inferior goods is __________.
Fill in the blank with appropriate alternatives given below:
Perfectly elastic demand curve is ________________.
Fill in the blank with appropriate alternatives given below:
Cross elasticity of demand is applicable to ____________ goods.
State whether the following statement is TRUE and FALSE.
Demand for luxuries is elastic.
State whether the following statement is TRUE and FALSE.
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State whether the following statement is TRUE and FALSE.
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State whether the following statement is TRUE and FALSE.
Unitary Elastic Demand rarely occurs in practice.
Define or explain the following concept:
Cross Elasticity of Demand
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Demand for necessaries is inelastic.
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Demand for habitual goods is inelastic.
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Concept of Elasticity of Demand helps trade union leaders.
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Demand for commodity having multiple uses has elastic demand.
Answer the following question.
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(i) Greater than one
(ii) Less than one
(iii) Unity
Define price elasticity of demand.
State whether the following statement is true or false. Give valid reasons in support of your answer.
Luxury goods often have lower price elasticity of demand.
Answer the following question.
When the price of X doubles, its quantity demanded falls by 60 percent. Calculate its price elasticity of demand. What should be the percentage change in price so that its quantity demanded doubles?
Arrange the following coefficients of price elasticity of demand in ascending order:
(−) 3.1, (−) 0.2, (−) 1.1
Give economic term:
Elasticity resulting from infinite change in quantity demanded.
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- Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand.
Elasticity of demand is equal to one indicates
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Reason (R): The coefficient of Elasticity ranges between 0 and 1.
Identify the correctly matched pair from the items in Column A by matching them to the items in column B:
| Column A | Column B |
| 1. Increase or decrease in demand for a commodity does not cause any change in its price. | (a) Effect on supply, in the case of Perfectly Elastic Demand. |
| 2. Increase or decrease in demand causes a change in the price of the commodity. Equilibrium quantity remains constant. | (b) Effect on demand, in the case of Perfectly Inelastic Supply. |
| 3. Increase or decrease in demand cause a change in the price of the commodity. Equilibrium quantity remains constant. | (c) Effect on demand, in the case of Perfectly Elastic Supply. |
| 4. Increase or decrease in demand for a commodity does not cause any change in its price. | (d) Effect on supply, in the case of Perfectly Elastic Demand. |
Identify the correctly matched pair from the items in Column A by matching them to the items in Column B:
| Column A | Column B | ||
| 1 | Relatively Inelastic Demand | (a) | ed > 1 |
| 2 | Relatively Elastic Demand | (b) | ed < 1 |
| 3 | Perfectly Inelastic Demand | (c) | ed = 0 |
| 4 | Perfectly Elastic Demand | (d) | ed = 1 |
Assertion (A): Elasticity of demand explains that one variable is influenced by another variable.
Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand.
Study the following table and answer the questions:
| Price of Pen (₹) | Demand for Pen |
| 10 | 500 |
| `square` | 400 |
| 30 | `square` |
| `square` | 200 |
| 50 | `square` |
Questions:
- Complete the above table.
- Which type of relationship is found between the price of a pen and demand for the pen?
Assertion (A) : A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R) : Changes in consumers income leads to a change in the quantity demanded.
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Explain the concept of price elasticity demand.
As a result of 5% fall in the price of a good, its demand rises by 12%, the demand for the good will said be ______.
When change in price is greater than the change in quantity demand it is a case of elastic demand.
- Luxuries goods have generally elastic demand.
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When is the demand for a good said to be elastic?
What is meant by elastic demand?
