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Question
The price elasticity of demand on a linear demand curve at the X-axis is ______.
Options
zero
one
infinity
less than one
Solution
The price elasticity of demand on a linear demand curve at the X-axis is zero.
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RELATED QUESTIONS
Explain the total outlay method of measuring elasticity of demand?
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.
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 = `(%Delta"Q")/(%Delta"P")` :: ______ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method: Ed = `(%\Delta"Q")/(%\Delta"P")`:: ______ : Ed = `("Lower segment")/("Upper segment")`
Complete the correlation:
______ : Straight line demand curve : : Non-linear demand curve : Curved line demand curve
Ratio method : Ed = `(%ΔQ)/(%ΔP)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
Ratio method: Ed = `(%Delta"Q") /(%Delta"UP")`:: ______: Ed = `("Lower segment")/ ("Upper segment")`
Complete the correlation:
Ratio method : Ed = `(%Δ Q) / (% Δ P)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
Complete the correlation:
Ratio method : Ed = `(%ΔQ)/(%ΔP)` :: ______ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method : Ed = `(%ΔQ)/(%ΔP)` : : ______ : Ed = `("Lower segment")/("Upper segment")`
Complete the correlation:
Ratio method : Ed = `(%triangle"Q")/(%triangle"P")` :: _______ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method : Ed = `("%"\Delta"Q")/("%"\Delta"P")` :: ______ : Ed =`("Lower segment") /("Upper segment")`
If demand increases by 50% due to an increase in price by 75%, calculate the price elasticity of demand.
The coefficient of price elasticity of a good is 0.8, its demand will said to be ______.
The price of a commodity goes up from ₹ 26 to ₹ 30 as a result of which demand falls from 4 units to 2 units, the price elasticity of demand is ______.
If the price of a commodity decreases from ₹ 70 per unit to ₹ 60 per unit and the quantity demanded remains the same, then the price elasticity of demand for that commodity will be ______.
If the percentage increase in the quantity of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is ______.
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 the price of a commodity falls by 80%, the quantity demanded increases by 100%. Find out its price elasticity of demand.
Ed = `100/80 = 1.25`
State the formula for calculating the price elasticity of demand using the percentage method.
Study the table given below and state whether demand is elastic or inelastic. Give reasons for your answer.
| Price in (₹) | Total outlay (₹) |
| 5 | 25 |
| 3 | 18 |
A consumer purchased 10 units of a commodity when its price was ₹ 5 per unit. He purchases 12 units of the commodity when price falls to ₹ 4 per unit. Calculate the price elasticity of demand for the commodity.
When % change in demand is greater than % change in price, it is a case of inelastic demand. Write true or false. Give reason.
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With the help of a diagram, explain the condition when Ep = 1.
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Give two examples of unitary elastic demand.
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−0.87, −0.53, −31 , −0.80
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State whether demand for the following goods is elastic or inelastic?
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- cigarettes
- diamonds
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- seasonal vegetables
- coal
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- needles
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