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प्रश्न
Income elasticity of demand.
उत्तर
Income elasticity of demand:-
Income elasticity of demand may be defined as the degree of responsiveness of quantity demanded to change in income only. Other factors including price remain unchanged. it is written as-
Ey = Percentage change in quantity demanded ÷ Percentage change in income
Symbolically, Ey = (% ∆ Qd) ÷ (% ∆Y)
Here: Q = quantity demanded, Y = Income, ∆ = Change,
Income elasticity of demand is positive, when demand increases with increasing income. Income elasticity of demand is negative when, quantity demanded decreases with increase in income. Income elasticity of demand is negative when, quantity demanded decreases with increase in income. In case of normal goods income elasticity of demand is positive, whereas in case of inferior goods, income, elasticity of demand is negative. Income elasticity of demand can be zero, one, greater than one and less than one.
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संबंधित प्रश्न
What are the types of Elasticity of Demand.
The demand for good rises by 20 percent as a result of all in its price. Its price elasticity of demand is (−) 0.8. Calculate the percentage fall in price.
How is price elasticity of demand affected by:
(i) Number of substitutes of available for the good.
(ii) Nature of the good.
Explain the relationship between
(i) Prices of other goods and demand for the given good.
(ii) Income of the buyers and demand for a good.
Write an explanatory answer :
What is the price elasticity of demand? Explain the types of price elasticity of demand.
Write short answer for the following question :
Explain the Fectors Determinants of Elastacity of Demand?
State whether the following statements are True or False with reasons:
The demand of a rich person is elastic.
Under monopoly, price elasticity of demand is ______
______ refers to the effects of a change in price of commodity X on demand for commodity Y when quantity demanded.
Which of the following points are related with effective demand?
Which of the following influence price elasticity of demand?
When the demand of a commodity is inelastic.
As we move along a downward sloping straight-line demand curve from left to right, price elasticity of demand ______
______ refers to the minimum price, fixed by the government, which is above the equilibrium price.
When price falls with rise in output, TR is ______ when MR is zero
Statement 1: The supply of the commodity can also decrease when the price remains constant.
Statement 2: Due to rise in price of factor of production or inputs.
The supply curve of good shifts to the right when the price of other goods ______.
Identify the correctly matched pair of the items in Column A to that of Column B.
| Column A | Column B |
| 1. Unitary elastic supply curve | (a) U-shaped supply curve |
| 2. Relatively elastic supply curve | (b) Vertical line parallel to Y-axis |
| 3. Perfectly elastic supply curve | (c) Horizontal line parallel to X-axis. |
| 4. Perfectly inelastic supply curve | (d) Downward sloping supply curve |
Which of the following factor affects the individual demand?
When the actual price of a commodity is less than the equilibrium price, then equilibrium price ______
Which of the following statements is true?
If the price of a commodity and total expenditure on that commodity change in the same direction, the price elasticity of demand will be ______.
When can the income elasticity of demand be negative?
If the price elasticity of demand for a commodity is 2 and the percentage change in price is 5, the percentage change in quantity demanded will be ______.
If the price hike in the market is about 10% and this leads to the fall in the quantity demanded by 12%, calculate the price elasticity of demand. Mention the degree of price elasticity of demand.
