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Question
Price elasticity of demand is defined as the percentage change in the quantity demanded of a commodity divided by the percentage change in the price of that commodity.
Options
True
False
Solution
This statement is True.
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RELATED QUESTIONS
The price elasticity of demand for a good is - 0.4. If its price increases by 5 percent, by what percentage will its demand fall? Calculate.
Explain any 'two methods' of measuring price elasticity of demand.
Write short notes on the Proportional method of measuring the elasticity of demand.
State whether the following statement isTrue or False with reason:
The concept of elasticity of demand is useful in economic theory.
What do you mean by substitutes? Give examples of two goods which are complements of each other.
Define or explain the following concept:
Unitary Elastic Demand
Answer the following question.
When the price of X doubles, its quantity demanded falls by 60 percent. Calculate its price elasticity of demand. What should be the percentage change in price so that its quantity demanded doubles?
Give economic term:
Elasticity resulting from infinite change in quantity demanded.
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When change in price is greater than the change in quantity demand it is a case of elastic demand.
