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What is meant by elastic demand? - Economics

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प्रश्न

What is meant by elastic demand?

When is the demand for a commodity said to be elastic?

What is elastic demand?

अति संक्षिप्त उत्तर
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उत्तर

When the percentage change in demand is greater than the percentage change in price, demand is known as elastic demand.

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अध्याय 4: Elasticity of Demand - TEST YOURSELF QUESTIONS [पृष्ठ ७२]

APPEARS IN

फ्रैंक Economics [English] Class 12 ISC
अध्याय 4 Elasticity of Demand
TEST YOURSELF QUESTIONS | Q 6. | पृष्ठ ७२
गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
अध्याय 3 Elasticity of Demand
QUESTION BANK | Q 3. | पृष्ठ ७६

संबंधित प्रश्न

A consumer spends Rs 1000 on a good priced at Rs 8 per unit. When price rises by 25 percent, the consumer continues to spend Rs 1000 on the good. Calculate the price elasticity of demand by percentage method.


A consumer spends Rs 100 on a good priced at Rs 4 per unit. When price rises by 50 percent, the consumer continues to spend Rs 100 on the good. Calculate the price elasticity of demand by percentage method


A consumer buys 10 units of a commodity at a price of Rs. 10 per unit. He incurs an expenditure of Rs 200 on buying 20 units. Calculate price elasticity of demand by the percentage method. Comment upon the shape of demand curve based on this information. 


8 units of a good are demanded at a price of Rs 7 per unit. Price elasticity of demand is (−) 1. How many units will be demanded if the price rises to Rs 8 per unit? Use expenditure approach of price elasticity of demand to answer this question. 


Write a short note on factors determining elasticity of demand.


State whether the following statement is True or False :

Concept of elasticity of demand is useful for finance minister.


State whether the following statement isTrue or False with reason:                            

The concept of elasticity of demand is useful in economic theory.


Explain price elasticity of demand.


Fill in the blank with appropriate alternatives given below:

Perfectly elastic demand curve is ________________.


State whether the following statement is TRUE and FALSE.

Perfectly inelastic demand curve is parallel to the X axis.


State whether the following statement is TRUE and FALSE.

Unitary Elastic Demand rarely occurs in practice.


State whether the following statement is TRUE and FALSE.

Concept of Elasticity of Demand is useful for finance minister.


Define the following concept:

Cross Elasticity of Demand


Give reason or explain the following statement:

Concept of Elasticity of Demand helps trade union leaders.


Write short answer for the following question :

Total outlay method of measuring price elasticity of demand.


Define price elasticity of demand.


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 ______


  • Assertion (A): Elasticity of demand explains that one variable is influenced by another variable.
  • Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand.

What are the degrees of price elasticity of Demand?


What are the methods of measuring Elasticity of demand?


Elasticity of the demand is available when:


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

Assertion (A): Elasticity of demand explains that one variable is influenced by another variable.

Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand.


State with reasons whether you agree or disagree with the following statement:

The elasticity of demand gets influenced by the nature of the commodity.


Assertion (A) : A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.

Reasoning (R) : Changes in consumers income leads to a change in the quantity demanded.


The price of a good decreases from ₹100 to 80 per unit. If the price elasticity of demand for the good is 2 and the original quantity demanded is 30 units, calculate the new quantity demanded.


The elasticity of demand for school bag will be ______.


What does elasticity of demand measure?


What is unit elasticity of demand?


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