Advertisements
Advertisements
प्रश्न
Indicate the degree of elasticity of demand of the following demand curves.
उत्तर
Left Diagram (Horizontal Demand Curve)
Degree of Elasticity: Perfectly Elastic Demand
The horizontal demand curve indicates that the quantity demanded is infinitely responsive to price changes. Even a tiny change in price would cause the quantity demanded to change significantly. Therefore, the price elasticity of demand is infinite (Ed = ∞).
Right Diagram (Downward Sloping Demand Curve)
Degree of Elasticity: Unitary Elastic Demand
The downward-sloping straight-line demand curve from the origin suggests that the percentage change in quantity demanded equals the percentage change in price at every point on the curve. Therefore, the price elasticity of demand is unitary elastic (Ed = 1).
APPEARS IN
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.
Degrees of price elasticity of demand is of ______ types.
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 |
Draw a diagram showing a perfectly elastic demand curve.
For each of the following, state whether it has inelastic demand or elastic demand:
- Luxury cars
- Life saving drugs
- Salt
- English textbook of class X
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
What is the price elasticity of demand for the following demand curve:
Straight line demand curve parallel to X-axis.
What is the price elasticity of demand for the following demand curve:
Rectangular hyperbola.
