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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 commodity, the total expenditure remains the same.
उत्तर
If a fall in the price of a commodity leads to total expenditure remaining the same, the elasticity of demand would be unity (i.e., the demand is unitary elastic).
Unitary Elastic Demand (Ed = 1): When demand is unitary elastic, a percentage decrease in price leads to an equal percentage increase in quantity demanded, resulting in no change in total expenditure.
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संबंधित प्रश्न
Identify the type of goods having price elasticity of demand greater than 1:
Define the form of market which has a perfectly elastic demand curve.
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity which is ______.
The demand curve is vertical
What will be the value of price elasticity in this case?
Match the following:
| Column I | Column II |
| A. Perfectly Elastic | (i) Ed = 0 |
| B. Perfectly Inelastic | (ii) Ed = infinity |
| C. Highly Elastic | (iii) Ed < I |
| D. Less Elastic | (iv) Ed > I |
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 |
Draw a diagram showing a perfectly elastic demand curve.
When is the demand of a commodity said to be inelastic?
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
Explain the different types of price elasticity of demand.
