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Question
With the help of a diagram, explain the Relatively elastic demand curve.
Solution
Relatively elastic demand curve:
When a price change is small and change in quantity demanded is considerable, it is the situation of relatively elastic demand. The demand of luxuries, e.g., Jewellery is an example of highly elastic demand. Its demand has considerable extension or contraction with relatively minor price changes.
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Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R) : Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
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Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
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