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प्रश्न
The nature of a commodity determines its price elasticity of demand. Explain.
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 uniform 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.
संबंधित प्रश्न
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
Choose the correct answer :
Perfectly elastic demand curve is _________.
Choose the correct answer :
Demand of electricity for domestic purpose is _________.
State whether the following statements are TRUE or FALSE :
The demand of foodgrains is inelastic.
Match the following:
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Group A
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Group B
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1. Cars and petrol
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a. Elastic demand
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2. Point method
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b. Complementary
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3. Necessary goods
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c. Geometric method
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d. Inelastic demand
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State whether demand will be Elastic or Inelastic. Give reasons for your answer.
A consumer prefers to postpone the purchase of a car to avail more of year ending discount.
Which of the following is the most likely reason for the relatively high elasticity of bottled water?
Comment upon the shape of the demand curve, if Ed = 0.
How does the time period affect the elasticity of demand?
Which statement correctly describes the relationship between postponement and price elasticity?
