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प्रश्न
Would the elasticity of demand in the following case be unity, less than unity or greater than unity?
A fall in the price of a commodity increases total expenditure.
उत्तर
If a fall in the price of a commodity increases total expenditure on that commodity, the elasticity of demand in this case would be greater than unity (i.e., the market is elastic).
Elastic Demand (> 1): When the demand for a commodity is elastic, a percentage decrease in price leads to a larger percentage increase in the quantity demanded. As a result, total expenditure on the commodity increases.
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संबंधित प्रश्न
Answer the following question.
Explain the geometric method of calculating the elasticity of supply.
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity which is ______.
Match the following:
| Column I | Column II |
| A. Goods whose close substitutes are available | (i) Perfectly elastic demand |
| B. Goods whose demand cannot be postponed | (ii) Perfectly inelastic demand |
| C. Goods whose quantity demanded does not respond to price change | (iii) Elastic demand |
| D. Goods which are perfect substitutes | (iv) Inelastic demand |
Would the elasticity of demand in the following case be unity, less than unity or greater than unity?
A rise in the price of a commodity reduces the total expenditure.
Draw a diagram showing a perfectly elastic demand curve.
Indicate the degree of elasticity of demand of the following demand curves.
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
Explain the different types of price elasticity of demand.
What is the price elasticity of demand for the following demand curve:
Straight line demand curve parallel to X-axis.
What is the price elasticity of demand for the following demand curve:
Rectangular hyperbola.
