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प्रश्न
State whether the following statement is true or false. Give valid reasons in support of your answer.
The coefficient of price elasticity of demand for the commodity is inversely related to the number of alternative uses of the commodity.
पर्याय
True
False
उत्तर
The statement 'The coefficient of price elasticity of demand for the commodity is inversely related to the number of alternative uses of the commodity' is False.
A commodity that can be used for different purposes (such as milk) will have elastic demand. This is because if the price of this commodity increases, then it will be used only for important purposes leading to a drastic fall in demand. Thus, the demand for such goods is highly responsive to price. On the contrary, a good that has limited usage will have an inelastic demand.
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संबंधित प्रश्न
Income elasticity of demand for inferior goods is negative.
Income elasticity of demand for inferior goods is negative.
When the price of a commodity X falls by 10 percent. Its demand rises from 150 units to 180
units. Calculate is price elasticity of demand. How much should be the percentage fall in its
price so that its demand rises from 150 to 210 units?
Discuss any four factors affecting price elasticity of demand.
A consumer spends Rs 200 on a good priced at Rs 5 per unit. When the price falls by 20 percent, he continues to spend Rs 200. Find the price elasticity of demand by percentage method.
What is the elasticity of demand?
Give reasons or explain the following statements
Demand for basic necessities is inelastic.
What do you mean by a normal good?
What do you mean by substitutes? Give examples of two goods which are complements of each other.
Explain price elasticity of demand.
Consider the demand for a good. At price Rs 4, the demand for the good is 25 units. Suppose the price of the good increases to Rs 5, and as a result, the demand for the good falls to 20 units. Calculate the price elasticity.
Consider the demand curve D(p) = 10 − 3p. What is the elasticity at price `5/3` ?
Define or explain the following concept:
Unitary Elastic Demand
Define price elasticity of demand.
Answer the following question.
When the price of X doubles, its quantity demanded falls by 60 percent. Calculate its price elasticity of demand. What should be the percentage change in price so that its quantity demanded doubles?
Give an economic term:
Elasticity resulting from a proportionate change in quantity demanded due to a proportionate change in price.
The concept of elasticity of demand was introduced by
Study the following table and answer the questions:
| Price of Pen (₹) | Demand for Pen |
| 10 | 500 |
| `square` | 400 |
| 30 | `square` |
| `square` | 200 |
| 50 | `square` |
Questions:
- Complete the above table.
- Which type of relationship is found between the price of a pen and demand for the pen?
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.
- Luxuries goods have generally elastic demand.
- Goods whose close substitutes are available have inelastic demand.
