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प्रश्न
When is the demand for a commodity is said to be elastic?
What is meant by elastic demand?
उत्तर
When percentage change in demand is greater than the percentage change in price, demand is known as elastic demand.
संबंधित प्रश्न
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")`
Ratio method : Ed = `(%ΔQ)/(%ΔP)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
Complete the correlation:
Ratio method : Ed = `(%ΔQ)/(%ΔP)` : : ______ : Ed = `("Lower segment")/("Upper segment")`
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 ______.
Assertion (A): Suppose that a 2 per cent drop in the price of chocolate causes a 2 per cent increase in quantity demanded. This case is termed unit elasticity.
Reason (R): In this example, Ed is exactly 1 (or unity). Ed = `2/2=1`
A consumer purchased 10 units of a commodity when its price was ₹ 5 per unit. He purchases 12 units of the commodity when price falls to ₹ 4 per unit. Calculate the price elasticity of demand for the commodity.
Give two examples of unitary elastic demand.
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.
Ratio method : Ed = `(%ΔQ) /(%ΔP)` ______ :: Ed = `("Lower segment")/("Upper segment")`
