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Question
State whether the following statement isTrue or False with reason:
The concept of elasticity of demand is useful in economic theory.
Solution
True, the concept of elasticity of demand is useful in economic theory.
Explanation:
The concept of elasticity of demand is used in various fields such as it is used by government while determining the taxation policy or public utilities. It is also used by trade unions in collective bargaining.
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| 4 | Perfectly Elastic Demand | (d) | ed = 1 |
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| 10 | 500 |
| `square` | 400 |
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| `square` | 200 |
| 50 | `square` |
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