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प्रश्न
When the price of a commodity falls by 80%, the quantity demanded increases by 100%. Find out its price elasticity of demand.
Ed = `100/80 = 1.25`
उत्तर
Price Elasticity of Demand (Ed) = `("Percentage Change in Quantity Demanded")/("Percentage Change in Price")`
Ed = `(100%)/(-80%)`
Ed = 1.25
This means the price elasticity of demand is 1.25, which indicates that the demand is relatively elastic. However, it is important to remember the negative sign when interpreting the relationship, as it reflects the inverse relationship between price and quantity demanded.
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संबंधित प्रश्न
Complete the correlation:
Ratio method : Ed = `(%triangle"Q")/(%triangle"P")` :: _______ : Ed = `"Lower segment"/"Upper segment"`
Assertion (A): Total expenditure method measures elasticity of demand at a given point on the demand curve.
Reasoning (R): Total expenditure refers to the product of price and quantity demanded.
Explain the Ratio method of measuring price elasticity of demand.
Complete the correlation :
Ratio method : Ed = `(%ΔQ)/(%ΔP)` :: _____ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method : Ed = `\(%Delta "Q") /(%\Delta "P"` :: ______ : Ed = `\("Lower segment")/("Upper segment")`
As a result of a 5% increase in price, the demand for commodity X increases by 12%. The price elasticity of demand will be ______.
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`
The price of milk rises from ₹ 26.00 to ₹ 30.00 per litre and its demand falls from four litres per day to two litres per day. Calculate the elasticity demand for milk.
Give two examples of inelastic demand.
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
