Advertisements
Advertisements
प्रश्न
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
The demand for salt by households.
Advertisements
उत्तर
Because households only spend a relatively small percentage of their income on salt, their demand will be inelastic without near alternatives. The consumer will continue to purchase about the same amount of salt even if the price increases because it won't have much of an impact on their budget. As a result, there is no elastic demand for these commodities.
APPEARS IN
संबंधित प्रश्न
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 :
Perfectly elastic demand curve is _________.
Match the following:
|
Group A
|
Group B
|
|
1. Cars and petrol
|
a. Elastic demand
|
|
2. Point method
|
b. Complementary
|
|
3. Necessary goods
|
c. Geometric method
|
|
|
d. Inelastic demand
|
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
When the price elasticity of demand for a good equals ______.
The nature of a commodity determines its price elasticity of demand. Explain.
Discuss any three/ four factors determining price elasticity of demand.
What type of demand characterizes necessity goods compared to luxury goods?
How does the time period affect the elasticity of demand?
Which statement correctly describes the relationship between postponement and price elasticity?
