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प्रश्न
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
विकल्प
True
False
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उत्तर
This statement is False.
Explanation:
Good B has a higher elasticity because -3 (the elasticity of demand for good B) is more elastic than -2 (the elasticity of demand for good A). The more negative the elasticity value, the more elastic the demand is.
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संबंधित प्रश्न
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
Match the following :
| Group 'A' | Group 'B' |
| (a) Demand and price | (1) wages |
| (b) Perfectly elastic supply | (2) Vertical supply curve |
| (c) Land | (3) Transfer income |
| (d) Unemployment allowance | (4) Horizontal supply curve |
| (e) Reserve Bank of India | (5) Inverse relation |
| (6) Rent | |
| (7) 1935 | |
| (8) Direct relation |
Choose the correct answer :
Demand of electricity for domestic purpose is _________.
The coefficient of price elasticity of demand for Good X is (−) 0.2. If there is a 5% increase in the price of the good, by what percentage will the quantity demanded for the good fall?
How does the availability of substitutes of a commodity affect its price elasticity of demand?
Explain briefly the factors on which elasticity of demand depends.
When will the demand curve be parallel to x-axis?
State 3 factors which affect price elasticity of demand.
How does the nature of a good affect its elasticity of demand?
Which of the following correctly describes the relationship between availability of substitutes and price elasticity of demand?
