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प्रश्न
How does the nature of a good affect its elasticity of demand?
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उत्तर
Elasticity of demand of a good is influenced by its nature in the following ways:
- When a commodity is a necessity, its demand is generally inelastic (Ed < 1) → food grains, salt, school uniforms, etc.
- When a commodity is a comfort, its demand is generally unit elastic (Ed = 1) → cooler, TV, mobile phone, etc.
- When a commodity is a luxury, its demand is generally elastic (Ed > 1) → car, home theatre, air conditioner, etc.
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संबंधित प्रश्न
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
When price of a commodity falls by Rs 1 per unit, its quantity demanded rises by 3 units. Its price elasticity of demand is (−) 2. Calculate its quantity demanded if the price before the change was Rs 10 per unit.
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 _________.
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
How does the availability of substitutes of a commodity affect its price elasticity of demand?
When will the demand curve be parallel to x-axis?
Which of the following correctly describes the relationship between availability of substitutes and price elasticity of demand?
What effect do habitual consumption patterns have on price elasticity of demand?
