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प्रश्न
When the price of a commodity falls by 80%, the quantity demanded increases by 100%. Find out its price elasticity of demand.
Ed = `100/80 = 1.25`
उत्तर
Price Elasticity of Demand (Ed) = `("Percentage Change in Quantity Demanded")/("Percentage Change in Price")`
Ed = `(100%)/(-80%)`
Ed = 1.25
This means the price elasticity of demand is 1.25, which indicates that the demand is relatively elastic. However, it is important to remember the negative sign when interpreting the relationship, as it reflects the inverse relationship between price and quantity demanded.
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संबंधित प्रश्न
Complete the correlation:
Straight-line demand curve : Linear demand curve :: _______ : non-linear demand curve.
Explain the total outlay method of measuring elasticity of demand?
Find the odd word
Method of measuring price elasticity of demand -
- Which method of measuring elasticity is used in above diagram? (1m)
- Mention the type of elasticity at point ‘C’? (1m)
- Find out the elasticity at point ‘D’ by applying formula (2m)
Complete the correlation:
______ : Straight line demand curve : : Non-linear demand curve : Curved line demand curve
Select the commodities from the following which have inelastic demand:
With the help of a diagram, explain the condition when EP > 1.
With the help of a diagram, explain the condition when EP < 1.
What is meant by unitary elastic demand?
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
