Advertisements
Advertisements
प्रश्न
When change in price is greater than the change in quantity demand it is a case of elastic demand.
विकल्प
True
False
Advertisements
उत्तर
This statement is False.
Explanation:
When the price change is greater than the change in quantity demanded, it is a case of inelastic demand, not elastic demand. Inelastic demand means that the quantity demanded is relatively unresponsive to changes in price. Elastic demand occurs when the percentage change in quantity demanded is greater than in price.
APPEARS IN
संबंधित प्रश्न
When the price of a good falls from Rs 10 to Rs 8 per unit, its demand rises from 20 units to 24 units. What can you say about price elasticity of demand of the good through the expenditure approach?
Explain any 'two methods' of measuring price elasticity of demand.
Discuss any four factors affecting price elasticity of demand.
A consumer spends Rs 200 on a good priced at Rs 5 per unit. When the price falls by 20 percent, he continues to spend Rs 200. Find the price elasticity of demand by percentage method.
What do you mean by complements? Give examples of two goods which are complements of each other.
Define the following concept:
Cross Elasticity of Demand
Give reason or explain the following statement:
Demand for necessaries is inelastic.
State whether the following statement is true or false. Give valid reasons in support of your answer.
Luxury goods often have lower price elasticity of demand.
If a good takes up a significant share of consumers' budget, its demand will be ______.
Which type of good typically has inelastic demand?
