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प्रश्न
Which of the following is the most likely reason for the relatively high elasticity of bottled water?
विकल्प
Many substitutes are available
Good for health
Can be used for many purposes
Necessity item
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उत्तर
Many substitutes are available
Explanation:
The relatively high elasticity of bottled water is most likely due to the availability of many substitutes, such as tap water, filtered water, or other beverage options. When there are many substitutes, consumers can easily switch to a different option if the price of bottled water increases, leading to higher price elasticity.
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संबंधित प्रश्न
How does change in the price of complementary good affect the demand for the given good? Explain with the help of an example.
Explain the effect of the following on the price elasticity of demand of a commodity:
(i) Number of substitutes
(ii) Nature of the commodity
Choose the correct answer :
Demand of electricity for domestic purpose is _________.
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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The coefficient of price elasticity of demand for Good X is (−) 0.2. If there is a 5% increase in the price of the good, by what percentage will the quantity demanded for the good fall?
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
The demand for salt by households.
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
Assertion (A): The demand for soap, salt, matches etc. is highly elastic.
Reason (R): The demand for soap, salt, matches etc. is highly inelastic because the consumer spends a very small amount of expenditure in relation to his/her income.
The nature of a commodity determines its price elasticity of demand. Explain.
What effect do habitual consumption patterns have on price elasticity of demand?
