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प्रश्न
With the help of a diagram, explain the condition when EP > 1.
उत्तर
Ep > 1: Elastic Demand
If the price of the commodity falls, total expenditure increases, and with a rise in its price, total expenditure decreases, then demand for that commodity will be elastic or greater than one. In other words, when there is an inverse relationship between the price and total expenditure, the price elasticity of demand will be greater than one.
Diagram: The demand curve is relatively flatter, indicating that a small change in price leads to a larger change in quantity demanded.
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संबंधित प्रश्न
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")`
Which of the following goods have inelastic demand?
Is the demand for the following commodities elastic or inelastic?
- Salt
- Foodgrains
- Petrol
- Needles
- Green vegetables
- Four Square cigarettes
- Water
State the formula for calculating the price elasticity of demand using the percentage method.
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 |
Arrange the following coefficients of price elasticity of demand in ascending order.
−0.87, −0.53, −31 , −0.80
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
A consumer postpones the purchase of a refrigerator till the off-season sale.
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 electricity
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 cigar by a chain smoker
