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Question
Give two examples of unitary elastic demand.
Solution
- The demand for jewellery
- Designer clothes will elastic
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RELATED QUESTIONS
Assertion (A): Total expenditure method measures elasticity of demand at a given point on the demand curve.
Reasoning (R): Total expenditure refers to the product of price and quantity demanded.
- 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)
Complete the correlation:
______ : Straight line demand curve : : Non-linear demand curve : Curved line demand curve
Complete the correlation:
Ratio method : Ed = `(%ΔQ)/(%ΔP)` :: ______ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method : Ed = `(%DeltaQ)/(%DeltaP)` :: ______ : Ed : `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method : Ed = `(%ΔQ)/(%ΔP)` : : ______ : Ed = `("Lower segment")/("Upper segment")`
The coefficient of price elasticity of a good is 0.8, its demand will said to be ______.
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`
How do we determine whether the demand for a particular commodity is elastic or inelastic?
What is meant by unitary elastic demand?
