Advertisements
Advertisements
प्रश्न
The government wants to reduce the consumption of good by 10%. The price elasticity of demand for elasticity is -0.4. The government should raise the price of elasticity by ______.
विकल्प
2%
25%
0.4%
4%
उत्तर
The government wants to reduce the consumption of good by 10%. The price elasticity of demand for elasticity is -0.4. The government should raise the price of elasticity by 25%.
Explanation:
Percentage Change in Quantity Demanded = Price Elasticity of Demand × Percentage Change in Price
−10% = −0.4 × Percentage Change in Price
Percentage Change in Price = `(-10%)/-0.4`
= 25%
APPEARS IN
संबंधित प्रश्न
How does change in the price of complementary good affect the demand for the given good? Explain with the help of an example.
State whether the following statement is true or false :
Concept of ‘elasticity of demand’ is useful for the finance minister.
Write Short note on the following.
Ratio method of measuring price elasticity of demand ?
Match the following:
|
Group A
|
Group B
|
|
1. Cars and petrol
|
a. Elastic demand
|
|
2. Point method
|
b. Complementary
|
|
3. Necessary goods
|
c. Geometric method
|
|
|
d. Inelastic demand
|
The coefficient of price elasticity of demand for Good X is (−) 0.2. If there is a 5% increase in the price of the good, by what percentage will the quantity demanded for the good fall?
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
The demand for salt by households.
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
What is the implication of a vertical demand curve?
Assertion (A): The demand for soap, salt, matches etc. is highly elastic.
Reason (R): The demand for soap, salt, matches etc. is highly inelastic because the consumer spends a very small amount of expenditure in relation to his/her income.
The nature of a commodity determines its price elasticity of demand. Explain.
