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प्रश्न
With the help of a diagram, explain the condition when EP > 1.
उत्तर
Ep > 1: Elastic Demand
If the price of the commodity falls, total expenditure increases, and with a rise in its price, total expenditure decreases, then demand for that commodity will be elastic or greater than one. In other words, when there is an inverse relationship between the price and total expenditure, the price elasticity of demand will be greater than one.
Diagram: The demand curve is relatively flatter, indicating that a small change in price leads to a larger change in quantity demanded.
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संबंधित प्रश्न
Complete the correlation:
Straight-line demand curve : Linear demand curve :: _______ : non-linear demand curve.
Complete the correlation:
______ : Straight line demand curve : : Non-linear demand curve : Curved line demand curve
Complete the correlation:
Ratio method : Ed = `(%triangle"Q")/(%triangle"P")` :: _______ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method : Ed = `\(%Delta "Q") /(%\Delta "P"` :: ______ : Ed = `\("Lower segment")/("Upper segment")`
Ratio method : Ed = `(%DeltaQ)/(%DeltaP)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
Select the commodities from the following which have inelastic demand:
The price of a commodity falls from ₹15 to ₹10. As a result, demand rises from 100 units to 150 units, Use the expenditure method to find the price elasticity of 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.
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for refrigerators
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for precious stones and costly jewellery
