Advertisements
Advertisements
प्रश्न
If a good takes up a significant share of consumers' budget, its demand will be ______.
विकल्प
Less elastic
Highly elastic
Unitary elastic
Perfectly elastic
Advertisements
उत्तर
If a good takes up a significant share of consumers' budget, its demand will be highly elastic.
Explanation:
If a good consumes a significant portion of the consumer budget, it implies that it cannot be a necessary comfort or jointly demanded good.
APPEARS IN
संबंधित प्रश्न
Price elasticity of demand for the two goods X and Y are zero and (–) 1 respectively. Which of the two is more elastic and why?
Write short notes on the Proportional method of measuring the elasticity of demand.
Consider the demand for a good. At price Rs 4, the demand for the good is 25 units. Suppose the price of the good increases to Rs 5, and as a result, the demand for the good falls to 20 units. Calculate the price elasticity.
Define the following concept:
Cross Elasticity of Demand
Give reason or explain the following statement:
Demand for habitual goods is inelastic.
Choose the correct answer from given options.
The expenditure on a good would change in the opposite direction as the price changes only when demand is ______
Give an economic term:
Elasticity resulting from a proportionate change in quantity demanded due to a proportionate change in price.
Identify the correctly matched pair from the items in Column A by matching them to the items in Column B:
| Column A | Column B | ||
| 1 | Relatively Inelastic Demand | (a) | ed > 1 |
| 2 | Relatively Elastic Demand | (b) | ed < 1 |
| 3 | Perfectly Inelastic Demand | (c) | ed = 0 |
| 4 | Perfectly Elastic Demand | (d) | ed = 1 |
State with reasons whether you agree or disagree with the following statement:
The elasticity of demand gets influenced by the nature of the commodity.
Define elasticity of demand.
