Advertisements
Advertisements
प्रश्न
When the price of good rise from Rs 10 per unit to Rs 12 per unit, its quantity demanded falls by 20 percent. Calculate its price elasticity of demand. How much would be the percentage change in its quantity demanded, if the price rises from Rs 10 per unit to Rs 13 per unit?
उत्तर
Initial Price (P0) = Rs 10
Final Price (P1) = Rs 12
Percentage change in quantity demanded = -20
`Ed = -"Percentage Change in Quantity Demanded"/"Percentage Change in Price"`
`Ed = (-20)/((P_1-P_0)/(P_0) xx 100)`
`Ed = (+20)/((12-10)/10 xx 100)`
∴ Ed = 1
Now, `P_0 = Rs 10 " and" P_1 = Rs 13`
`1 = "Percentage Change in Demand"/((13-10)/10 xx 100)`
∴ Percentage Change in Demand = - 30
Hence, demand falls by 30% when price rises from Rs 10 to Rs 13 per unit.
संबंधित प्रश्न
Income elasticity of demand for inferior goods is negative.
Demand for the commodity having multiple uses has elastic demand.
A consumer spends Rs 1,000 on a good priced at Rs10 per unit. When its price falls by 20 percent, the consumer spends Rs800 on the good. Calculate the price elasticity of demand by the Percentage method
Price elasticity of demand of a good is (-)1. When its price per unit falls by one rupee, its de from 16 to 18 units. Calculate the price before a change
A consumer spends Rs 400 on a good priced at Rs 4 per unit. When the price rises by 25 percent, the consumer continues to spend Rs 400. Calculate the price elasticity of demand by percentage method.
Write short note on:
factors determining elasticity of demand .
Give reasons or explain the following statements
Demand for basic necessities is inelastic.
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.
The demand for salt is ______.
Fill in the blank with appropriate alternatives given below:
Cross elasticity of demand is applicable to ____________ goods.
State whether the following statement is TRUE and FALSE.
Perfectly inelastic demand curve is parallel to the X axis.
Give reason or explain the following statement:
Concept of Elasticity of Demand helps trade union leaders.
Give reason or explain the following statement:
Demand for commodity having multiple uses has elastic demand.
Define price elasticity of demand.
The concept of elasticity of demand was introduced by
What are the methods of measuring Elasticity of demand?
Price elasticity of demand is defined as the percentage change in the quantity demanded of a commodity divided by the percentage change in the price of that commodity.
When is the demand for a good said to be elastic?
