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प्रश्न
Would the elasticity of demand in the following case be unity, less than unity or greater than unity?
A rise in the price of a commodity increases total expenditure.
उत्तर
If a rise in the price of a commodity increases total expenditure on that commodity, the elasticity of demand would be less than unity (i.e., the demand is inelastic).
Inelastic Demand (< 1): When the demand for a commodity is inelastic, a percentage increase in price leads to a smaller decrease in the quantity demanded. As a result, total expenditure on the commodity increases.
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संबंधित प्रश्न
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity which is ______.
Would the elasticity of demand in the following case be unity, less than unity or greater than unity?
A fall in the price of a commodity increases total expenditure.
Draw a diagram showing the Elasticity of demand less than one.
For each of the following, state whether it has inelastic demand or elastic demand:
- Luxury cars
- Life saving drugs
- Salt
- English textbook of class X
Indicate the degree of elasticity of demand of the following demand curves.
When is the demand of a commodity said to be inelastic?
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
Indicate the degree of elasticity of demand of the following demand curve.
Explain the different types of price elasticity of demand.
What is the price elasticity of demand for the following demand curve:
Straight line demand curve parallel to X-axis.
