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प्रश्न
Explain the different types of price elasticity of demand.
उत्तर
Degrees of Price Elasticity of Demand
- Perfectly Elastic Demand (Ed = α): When the demand for a commodity rises or falls at a particular price or becomes zero with a slight rise in price, the demand for that commodity is said to be perfectly elastic (Ed = α).
- Perfectly Inelastic Demand (Ed = 0): When demand remains constant and does not change with change in price, the demand is known as perfectly inelastic.
- Highly Elastic Demand (Ed > 1): When % change in quantity demanded > % change in price, it is called highly elastic demand.
- Inelastic Demand (Ed < 1): When percentage change in quantity demanded for a commodity is less than the percentage change in its price, it is called highly inelastic demand.
- Unit Elastic Demand (Ed = 1): When percentage change in demand for a commodity is equal to percentage change in price, it is termed as unit elastic demand.
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संबंधित प्रश्न
Define the form of market which has a perfectly elastic demand curve.
If elasticity of demand for salt is zero, and household demands 2 kg. of salt during one month when its price is ₹ 5 per kg., this household will demand the same quantity of salt even if price rises to ₹ 8 per kg.
Match the following:
| Column I | Column II |
| A. Goods whose close substitutes are available | (i) Perfectly elastic demand |
| B. Goods whose demand cannot be postponed | (ii) Perfectly inelastic demand |
| C. Goods whose quantity demanded does not respond to price change | (iii) Elastic demand |
| D. Goods which are perfect substitutes | (iv) Inelastic demand |
Would the elasticity of demand in the following case be unity, less than unity or greater than unity?
A rise in the price of a commodity increases total expenditure.
Would the elasticity of demand in the following case be unity, less than unity or greater than unity?
A fall in the price of a commodity increases total expenditure.
For each of the following, state whether it has inelastic demand or elastic demand:
- Luxury cars
- Life saving drugs
- Salt
- English textbook of class X
Indicate the degree of elasticity of demand of the following demand curves.
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
What is the price elasticity of demand for the following demand curve:
Straight line demand curve parallel to Y-axis.
What is the price elasticity of demand for the following demand curve:
Rectangular hyperbola.
