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प्रश्न
Explain the term elasticity of demand.
उत्तर
Alfred Marshall was the first economist to develop the concept of price elasticity of demand as the ratio of a relative change in quantity demanded to a relative change in price. A relative measure is needed so that changes in different measures can be compared. These relative changes in demand and price are measured by percentage change. The percentage changes are independent of units. The elasticity of demand is the ratio between the percentage change in demand and percentage change in price.
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संबंधित प्रश्न
Explain the factors determining the elasticity of demand.
When the price of a good falls from Rs 10 to Rs 8 per unit, its demand rises from 20 units to 24 units. What can you say about price elasticity of demand of the good through the expenditure approach?
A consumer buys 27 units of a good at a price of Rs 10 per unit. When the price falls to Rs 9 per unit, the demand rises to 30 units. What can you say about price elasticity of demand of the good through the 'expenditure approach'?
Write short notes on the Proportional method of measuring the elasticity of demand.
State whether the following statement isTrue or False with reason:
The concept of elasticity of demand is useful in economic theory.
State whether the following statement is TRUE and FALSE.
Demand for luxuries is elastic.
Give reason or explain the following statement:
Demand for commodity having multiple uses has elastic demand.
Choose the correct answer from given options.
The expenditure on a good would change in the opposite direction as the price changes only when demand is ______
The concept of elasticity of demand was introduced by
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.
