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प्रश्न
Identify the type of goods having price elasticity of demand greater than 1:
पर्याय
Luxury goods
Inferior goods
Necessary goods
Giffen goods
उत्तर
Luxury goods
Explanation:
The price elasticity of demand for luxury products is greater than 1 because the percentage change in demand exceeds the percentage change in price of luxury items.
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संबंधित प्रश्न
Answer the following question.
Explain the geometric method of calculating the elasticity of supply.
Define the form of market which has a perfectly elastic demand curve.
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity which is ______.
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | A. | Ed = 0 |
| (ii) | Perfectly inelastic demand | B. | Ed = ∞ |
| (iii) | Relatively elastic demand | C. | Ed < 1 |
| (iv) | Relatively inelastic demand | D. | Ed > 1 |
Match the following:
| Column I | Column II |
| A. Goods whose close substitutes are available | (i) Perfectly elastic demand |
| B. Goods whose demand cannot be postponed | (ii) Perfectly inelastic demand |
| C. Goods whose quantity demanded does not respond to price change | (iii) Elastic demand |
| D. Goods which are perfect substitutes | (iv) Inelastic demand |
When is the demand for a commodity said to be perfectly inelastic?
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 reduces the total expenditure.
Indicate the degree of elasticity of demand of the following demand curves.
Explain the different types of price elasticity of demand.
What is the price elasticity of demand for the following demand curve:
Rectangular hyperbola.
