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प्रश्न
Choose the correct answer from given options.
The expenditure on a good would change in the opposite direction as the price changes only when demand is ______
पर्याय
elastic
inelastic
perfectly inelastic
unitary elastic
उत्तर
The expenditure on a good would change in the opposite direction as the price changes only when demand is Elastic.
Explanation:
The percentage change in quantity demanded in response to a given percentage change in the commodity's own price is known as price elasticity of demand.
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संबंधित प्रश्न
The price elasticity of demand for a good is - 0.4. If its price increases by 5 percent, by what percentage will its demand fall? Calculate.
Price elasticity of demand for the two goods X and Y are zero and (–) 1 respectively. Which of the two is more elastic and why?
When the price of a commodity X falls by 10 percent. Its demand rises from 150 units to 180
units. Calculate is price elasticity of demand. How much should be the percentage fall in its
price so that its demand rises from 150 to 210 units?
A consumer spends Rs 100 on a good priced at Rs 4 per unit. When its price falls by 25 percent, the consumer spends Rs 75 on the good. Calculate the price elasticity of demand by the Percentage method.
When the price of a good falls from Rs 10 to Rs 8 per unit, its demand rises from 20 units to 24 units. What can you say about price elasticity of demand of the good through the expenditure approach?
Explain any 'two methods' of measuring price elasticity of demand.
Write short notes on the Proportional method of measuring the elasticity of demand.
Give reasons or explain the following statements
Demand for basic necessities is inelastic.
Fill in the blanks with appropriate alternatives given in the bracket.
Demand elasticity can be measured from demand curve by ___________ method.
State whether the following statement is TRUE and FALSE.
Demand for luxuries is elastic.
State whether the following statement is TRUE and FALSE.
Unitary Elastic Demand rarely occurs in practice.
Give reason or explain the following statement:
Concept of Elasticity of Demand helps trade union leaders.
Write short answer for the following question :
Total outlay method of measuring price elasticity of demand.
State whether the following statement is true or false. Give valid reasons in support of your answer.
Luxury goods often have lower price elasticity of demand.
What will be the effect on price elasticity of demand, if the time required to find the substitute product is more.
Identify the correctly matched pair from the items in Column A by matching them to the items in Column B:
| Column A | Column B | ||
| 1 | Relatively Inelastic Demand | (a) | ed > 1 |
| 2 | Relatively Elastic Demand | (b) | ed < 1 |
| 3 | Perfectly Inelastic Demand | (c) | ed = 0 |
| 4 | Perfectly Elastic Demand | (d) | ed = 1 |
The elasticity of demand for school bag will be ______.
Explain the term elasticity of demand.
When change in price is greater than the change in quantity demand it is a case of elastic demand.
