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प्रश्न
How is the price elasticity of demand of a commodity is affected by the number of its substitutes.
उत्तर
Price elasticity of demand of goods depends on the availability of its substitutes in the market. More the number of substitutes available, higher the price elasticity of demand for that good. It is because when there is a price change the buyers can easily shift from one substitute to another.
संबंधित प्रश्न
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of another commodity is cross elasticity.
Reasoning (R): Changes in consumer income lead to a change in the quantity demanded.
Degree of responsiveness of a change in quantity demanded to a change in the income of the consumer −
Find the odd word
Types of elasticity of demand -
Identify & explain the concept from the given illustration.
At Amulya Café, the demand for tea increased by 5% due to a 10% rise in the price of coffee.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
If prices of salt and coffee increase by the same proportion, will their quantity demanded behave in the same manner? Explain by giving reasons.
With the help of a diagram, explain the Relatively elastic demand curve.
With the help of a diagram, explain the Unitary elastic demand curve.
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is zero?
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is −1?
Price elasticity of demand shows:
Given values of price elasticities of demand, less 'elastic' demand is ______.
What is meant by cross elasticity of demand?
