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प्रश्न
Study the table given below and state whether demand is elastic or inelastic. Give reasons for your answer.
| Price in (₹) | Total outlay (₹) |
| 5 | 25 |
| 3 | 18 |
उत्तर
We can use the total expenditure (or outlay) method to determine whether the demand is elastic or inelastic. This method analyzes how the total expenditure changes when the price of a commodity changes.
Given Data
- Initial Price (P1): ₹5
- New Price (P2): ₹3
- Initial Total Outlay (E1): ₹25
- New Total Outlay (E2): ₹18
Analysis:
Total Outlay Method: According to this method:
- Elastic Demand: If the total expenditure (total outlay) decreases when the price decreases, demand is elastic (Ed > 1).
- Inelastic Demand: Demand is inelastic if the total expenditure decreases when the price decreases (Ed < 1).
- Unitary Elastic Demand: If the total expenditure remains unchanged as the price changes, the demand is unitary elastic (Ed = 1).
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संबंधित प्रश्न
Complete the correlation:
Straight-line demand curve : Linear demand curve :: _______ : non-linear demand curve.
Assertion (A): Total expenditure method measures elasticity of demand at a given point on the demand curve.
Reasoning (R): Total expenditure refers to the product of price and quantity demanded.
Explain the Ratio or percentage method of measuring price elasticity of demand.
Complete the correlation.
Ratio method : Ed = `(% Delta "Q")/(%Delta"P"):: "______" : Ed = ("Lower segment")/("Upper segment")`
Complete the correlation :
Ratio method : Ed = `(%Delta"Q")/(%Delta"P")` :: ______ : Ed = `"Lower segment"/"Upper segment"`
Ratio method : Ed = `(%ΔQ)/(%ΔP)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
The coefficient of price elasticity of a good is 0.8, its demand will said to be ______.
Arrange the following coefficients of price elasticity of demand in ascending order.
−0.87, −0.53, −31 , −0.80
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for school uniform
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for diesel and petrol
