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प्रश्न
If the percentage increase in the quantity of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is ______.
पर्याय
greater than 1
equal to 1
smaller than 1
zero
उत्तर
If the percentage increase in the quantity of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is smaller than 1.
Explanation:
If the percentage increase in the quantity demanded is smaller than the percentage fall in its price, the demand is relatively inelastic. In this case, the coefficient of price elasticity of demand is less than 1.
APPEARS IN
संबंधित प्रश्न
Assertion (A): Total expenditure method measures elasticity of demand at a given point on the demand curve.
Reasoning (R): Total expenditure refers to the product of price and quantity demanded.
- Which method of measuring elasticity is used in above diagram? (1m)
- Mention the type of elasticity at point ‘C’? (1m)
- Find out the elasticity at point ‘D’ by applying formula (2m)
Explain the Ratio method of measuring price elasticity of demand.
Explain the Ratio or percentage method of measuring price elasticity of demand.
Complete the correlation:
Ratio method : `"Ed"= (%\Delta"Q")/(%\Delta"P") :: "______" : "Ed" = "Lower segment"/("Upper segment"`
Select the commodities from the following which have inelastic demand:
The price of a commodity falls from ₹15 to ₹10. As a result, demand rises from 100 units to 150 units, Use the expenditure method to find the price elasticity of demand.
Give two examples of inelastic demand.
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
A consumer postpones the purchase of a refrigerator till the off-season sale.
State whether demand for the following goods is elastic or inelastic?
- car
- textbooks
- cigarettes
- diamonds
- milk
- seasonal vegetables
- coal
- Dawat basmati rice
- needles
- colour T.V.
