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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 reduces the total expenditure.
उत्तर
If a rise in the price of a commodity reduces the total expenditure on that commodity, the elasticity of demand in this case would be greater than unity (i.e., the demand is elastic).
Elastic Demand (> 1): When the demand for a commodity is elastic, a percentage increase in price leads to a larger percentage decrease in the quantity demanded. As a result, total expenditure on the commodity decreases.
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संबंधित प्रश्न
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 |
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.
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.
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.
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
When is the demand of a commodity said to be inelastic?
Indicate the degree of elasticity of demand of the following demand curve.