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When is Demand Called Perfectly Inelastic? - Economics

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Question

When is demand called perfectly inelastic?

Solution

When the demand for a good does not change with the change in the price of that good, it is said to be perfectly inelastic, i.e. Ed = 0.

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2013-2014 (March) Foreign Set 2

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Demand curve and Supply curve.


Define or explain the following concept :

Effective demand .


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Explain the following concepts or give definitions. 

Demand 


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When price of commodity rises, the demand for it ______________.


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Direct demand


Give reason or explain the following statement.

Increase in demand indicates a rightward shift in the demand curve.


State whether the following statement is true or false. Give reasons for your answer :
X and Y are complementary goods. A fall in the price of Y will result in a rise in the price of X.


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In the given figure X1Y1 and X2Yare Production Possibility Curves in two different periods T1 and T2 respectively for Good X and Good Y. A1 and A2 represent actual outputs and P1 and Prepresent potential outputs respectively in the two times periods.

The change in actual output of Goods X and Y over the two periods would be represented by a movement from __________. 


Law of demand states the ______ relationship between price and quantity demanded.


Which of the following statements is false?


Read the following news report and answer the Q.97-Q.100 on the basis of the same:

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The price elasticity of demand for a good depends on ______ and ______ of the good.


The demand curve of a firm under monopoly is ______


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Which of the following is the reason behind the downward slope of demand option?


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The Coca-Cola Company is an American multinational beverage company, with its headquarters in Atlanta, Georgia. The first company that conducted its operation in the soft drink industry was Coca-Cola. It is the world's largest non-alcoholic beverage company serving more than 1.8 billion consumers daily in more than 200 countries. It has a portfolio of more than 3,500 (more than 800 no or low-calorie) products. However, the company is best known for its flagship product Coca-Cola which was originally intended to be a patented medicine invented in 1886 by pharmacist John Smith Pemberton in Columbus, Georgia. The Coca-Cola products can be termed as normal goods and in August 2019 Coca-Cola introduced a new product into the market, that is, zero sugar where the demand has increased for the product in the market.

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The figure given below shows the relation between the quantity demanded for the good X and the price of the good Z. What type of goods are X and Z?


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