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प्रश्न
What is meant by price elasticity of demand?
Define price elasticity of demand.
Define elasticity of demand.
What is price elasticity of demand?
उत्तर १
Price elasticity of demand refers to the responsiveness or sensitivity of demand to changes in the price of a commodity while other factors stay constant. Alfred Marshall introduced this concept. Alfred Marshall, "Elasticity of demand may be defined as the percentage change in quantity demanded to the percentage change in price.
`"P"_"(Ed)" = "Proportionate change in demand"/"Proportionate change in price"`
उत्तर २
Price elasticity of demand measures the degree of responsiveness of the quantity demanded of a commodity to a change in its price.
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संबंधित प्रश्न
Complete the following statement:
Price elasticity of demand on a linear demand curve at the Y-axis is equal to ________.
Statements that are related to cross elasticity of demand:
- Change in quantity demanded of one commodity due to a change in the price of other commodity
- It is a type of elasticity of demand.
- It is applicable to complementary goods and substitutes.
- It is expressed as Ey = % ΔQ / %ΔY
Identify & explain the concept from the given illustration.
At Amulya Café, the demand for tea increased by 5% due to a 10% rise in the price of coffee.
Explain the types of elasticity of demand
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.
Define income elasticity of demand.
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.
Why is price elasticity of demand negative?
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is zero?
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is −2?
