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प्रश्न
When is the demand for a commodity said to be elastic?
What is meant by elastic demand?
उत्तर १
Demand is considered to be elastic when a little change in price causes an indefinitely large change in the amount desired of a good. A minor increase in the seller's price will reduce demand for the good to zero, whereas a slight decrease in the price will cause such a large increase in demand for the commodity that no seller will be able to meet the demand at the decreased price. In such a case, the demand curve is a straight line parallel to the X-axis.
उत्तर २
When the percentage change in demand is greater than the percentage change in price, demand is known as elastic demand.
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संबंधित प्रश्न
The coefficient of price elasticity of a good is 0.8 its demand will said to be ______.
As a result of a 10% fall in price of good X its demand also increases by 10%. The price elasticity of demand for the commodity will be ______.
When the percentage change in demand of a commodity is greater than the percentage change in its price, the demand for the commodity is ______.
If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand is ______.
When the percentage change in quantity demanded is equal to percentage change in price, then it is called as ______ demand.
Briefly explain the percentage method of calculating elasticity of demand.
