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प्रश्न
Briefly explain the percentage method of calculating elasticity of demand.
How is the elasticity of demand measured according to the percentage method?
Explain the percentage method of measuring price elasticity of demand.
उत्तर
According to this method, the price-elasticity of demand is given by the ratio of percentage change in demand to percentage change in price, i.e.
`"Percentage Change in Demand"/"Percentage Change in Price"`
If the value of this ratio is equal to one, then the commodity will be unit elastic.
If the value is less than one, then the commodity will be inelastic and if it is more than one, then the commodity will be elastic.
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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.
When is the demand for a commodity said to be elastic?
