Advertisements
Advertisements
Question
If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand is ______.
Options
> 1
= 1
< 1
= O
Solution
If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand is < 1.
APPEARS IN
RELATED QUESTIONS
The coefficient of price elasticity of a good is 0.8 its demand will said to be ______.
As a result of a 10% fall in price of good X its demand also increases by 10%. The price elasticity of demand for the commodity will be ______.
When the percentage change in demand of a commodity is greater than the percentage change in its price, the demand for the commodity is ______.
When the percentage change in quantity demanded is equal to percentage change in price, then it is called as ______ demand.
When is the demand for a commodity said to be elastic?
Briefly explain the percentage method of calculating elasticity of demand.
