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Questions
When is the demand for a commodity is said to be elastic?
What is meant by elastic demand?
Solution
When percentage change in demand is greater than the percentage change in price, demand is known as elastic demand.
RELATED QUESTIONS
Ratio method : Ed = `(%DeltaQ)/(%DeltaP)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
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Ed = `100/80 = 1.25`
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 |
With the help of a diagram, explain the condition when EP > 1.
Give two examples of inelastic demand.
Arrange the following coefficients of price elasticity of demand in ascending order.
−0.87, −0.53, −31 , −0.80
From the following state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for school uniform
