Advertisements
Advertisements
Question
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for diesel and petrol
Solution
Demand for diesel/petrol will be inelastic as its substitutes are not available.
APPEARS IN
RELATED QUESTIONS
- Which method of measuring elasticity is used in above diagram? (1m)
- Mention the type of elasticity at point ‘C’? (1m)
- Find out the elasticity at point ‘D’ by applying formula (2m)
Explain the Ratio method of measuring price elasticity of demand.
Complete the correlation :
Ratio method : Ed = `(%Delta"Q")/(%Delta"P")` :: ______ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method : Ed = `(%Δ Q) / (% Δ P)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
Ratio method : Ed = `(%DeltaQ)/(%DeltaP)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
If demand increases by 50% due to an increase in price by 75%, calculate the price elasticity of demand.
Which of the following goods have inelastic demand?
With the help of a diagram, explain the condition when EP < 1.
Arrange the following coefficients of price elasticity of demand in ascending order.
−0.87, −0.53, −31 , −0.80
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for personal computers
