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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 = ∞): 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 = ∞)
- 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 the 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
With the help of a graph explain the relatively inelastic demand for a commodity.
Analyse the given graphs and identify the type of elasticity of demand of:
- Picture 1
- Picture 2
Which of the following goods have inelastic demand?
Mention one example of inelastic demand. Give a reason in support of your answer.
Mention the degree of price elasticity of demand for the following goods:
Medicine
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
A consumer postpones the purchase of a refrigerator till the off-season sale.
Indicate the degree of elasticity demand of the following demand curves.
When is the demand for a commodity said to be perfectly inelastic?
What is price elasticity of demand for life saving drugs?
The value of price elasticity of demand is 0.8. Is demand elastic or inelastic? Give reason.
