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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 school uniform
Solution
School uniform is an essential item. So, demand for it will be inelastic.
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RELATED QUESTIONS
Explain the total outlay method of measuring elasticity of demand?
Explain the Ratio or percentage 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 = `(%ΔQ)/(%ΔP)` :: _____ : Ed = `"Lower segment"/"Upper segment"`
Assertion (A): Suppose that a 2 per cent drop in the price of chocolate causes a 2 per cent increase in quantity demanded. This case is termed unit elasticity.
Reason (R): In this example, Ed is exactly 1 (or unity). Ed = `2/2=1`
When is the demand for a commodity is said to be elastic?
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
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
A consumer postpones the purchase of a refrigerator till the off-season sale.
State whether demand for the following goods is elastic or inelastic?
- car
- textbooks
- cigarettes
- diamonds
- milk
- seasonal vegetables
- coal
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- needles
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