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प्रश्न
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 increases total expenditure.
उत्तर
If a rise in the price of a commodity increases total expenditure on that commodity, the elasticity of demand would be less than unity (i.e., the demand is inelastic).
Inelastic Demand (< 1): When the demand for a commodity is inelastic, a percentage increase in price leads to a smaller decrease in the quantity demanded. As a result, total expenditure on the commodity increases.
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संबंधित प्रश्न
The demand curve is horizontal
What will be the value of price elasticity in this case?
The demand curve is vertical
What will be the value of price elasticity in this case?
If elasticity of demand for salt is zero, and household demands 2 kg. of salt during one month when its price is ₹ 5 per kg., this household will demand the same quantity of salt even if price rises to ₹ 8 per kg.
When is the demand for a commodity said to be perfectly inelastic?
Draw a diagram showing a perfectly elastic demand curve.
For each of the following, state whether it has inelastic demand or elastic demand:
- Luxury cars
- Life saving drugs
- Salt
- English textbook of class X
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
Indicate the degree of elasticity of demand of the following demand curve.
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.
