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.
संबंधित प्रश्न
A 5 percent fall in the price of a good raises its demand from 300 units to 318 units. Calculate its price elasticity of demand.
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 |
State whether the following statement is true or false :
Concept of ‘elasticity of demand’ is useful for the finance minister.
The price of Y falls from ₹ 8 to ₹ 6. The quantity demanded increases from 100 units to 125 units. The price electricity of demand will be ______.
The nature of a commodity determines its price elasticity of demand. Explain.
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?
How does the nature of a good affect its elasticity of demand?
Which statement correctly describes the relationship between postponement and price elasticity?
