Advertisements
Advertisements
Question
Choose the correct answer :
Demand elasticity of habitual goods is _________.
Options
(a) more elastic
(b) less elastic
(c) zero elastic
(d) unitary elastic
Solution
Demand elasticity of habitual goods is zero elastic.
Explanation:
In case of habitual goods, the quantity demanded does not change even if there is a change in its prices. This is because the consumers are so habitual of consuming such goods, that even when the prices change, they continue to consume it due to habits.
APPEARS IN
RELATED QUESTIONS
When is the demand for a good said to be inelastic?
Income of the buyers and demand for a good.
When does 'change in demand' take place?
Explain the change in demand of a good on account of change in prices of related goods.
Explain how the demand for a good is affected by the prices of its related goods. Give examples.
Give reasons or Explain the following statements.
All desires are not demand.
State whether the following statements are TRUE or FALSE with reason.
The demand for consumption goods is direct demand.
Choose the correct answer :
The demand of a salt is _________.
State Whether the following statements are TRUE or FALSE:
Demand will not increase by coming of new customers.
State Whether the following statements are TRUE or FALSE:
Demand elasticity concept is useful for labour unions.
Choose the correct answer :
In the period of scarcity of a particular commodity _________.
Suppose the price elasticity of demand for a good is −0.2. If there is a 5% increase in the price of the good, then by what percentage will the demand for the good go down?
Suppose the price elasticity of demand for a good is −0.2. How will the expenditure on the good be affected if there is a 10% increase in its price ?
Suppose there was a 4% decrease in the price of a good, and as a result, the expenditure on the good increased by 2%. What can you say about the elasticity of demand ?
Distinguish between:
Increase in demand and Decrease in demand
Give economic terms.
Price being constant, demand falls due to unfavourable changes in other factors.
Distinguish between:
Increase in demand and Decrease in demand
