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Chapters
1: Factors of Production
Unit II - Theory of Demand and Supply
2: Elementary Theory of Demand
▶ 3: Elasticity of Demand
4: Theory of Supply
Unit III - Market
5: Meaning and Types of Markets
Unit IV - Banking in India
6: Meaning and Functions of Money
7: Commercial Banks
8: Central Bank
9: Introduction to Public Finance
10: Public Revenue
11: Public Expenditure
12: Public Debt
Unit V - Inflation
13: Inflation
Unit VI - Consumer Awareness
14: Consumer Awareness
![Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 3 - Elasticity of Demand - Shaalaa.com](/images/economics-english-class-10-icse_6:79542639410243508fde8e322c338fd1.jpg "Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 3 - Elasticity of Demand")
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Solutions for Chapter 3: Elasticity of Demand
Below listed, you can find solutions for Chapter 3 of CISCE Goyal Brothers Prakashan for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई.
Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई 3 Elasticity of Demand Exercise [Pages 87 - 91]
MULTIPLE CHOICE QUESTIONS
Price elasticity of demand shows:
Response of demand to change in price
Response of price to change in demand
Degree of response of price to change in demand
Degree of response of demand to change in price
When is the demand for a good said to be elastic?
When % change in demand is less than % change in price
When % change in demand is greater than % change in price
When absolute change in demand is greater than absolute change in price
None of these
Given values of price elasticities of demand, less 'elastic' demand is ______.
−2
1.8
0.8
−1.5
Degrees of price elasticity of demand is of ______ types.
Three
Five
Two
Four
Which is the implication of a horizontal demand curve?
Perfectly elastic demand
Perfectly inelastic demand
Inelastic demand
Elastic demand
Which of the following goods have inelastic demand?
Textbooks
Air conditioners
Cars
Precious clothes
The coefficient of price elasticity of a good is 0.8 its demand will said to be ______.
Elastic
Inelastic
Perfectly elastic
Perfectly inelastic
A demand curve which takes the form of a vertical line parallel to the price axis illustrates elasticity, which is ______.
Zero
Infinite
> 1
1
Identify elastic demand when value of Ed is ______.
(−) 0.2
(−) 0.8
(−) 1.5
1.0
In case of Ed = 0, demand curve is ______.
Horizontal
Vertical
Rectangular hyperbola
None of these
As a result of a 10% fall in price of good X its demand also increases by 10%. The price elasticity of demand for the commodity will be ______.
Ed > 1
Ed = 1
Ed < 1
Ed = 0
Which of the following goods has elastic demand?
Salt
Medicine
Big-sized colour TV
Newspapers
When despite of no change in the price of the good, its quantity demanded increases from 10 units to 15 units, then coefficient of price elasticity will be ______.
Less than one
Greater than one
Zero
Infinity (undefined)
When the percentage change in demand of a commodity is greater than the percentage change in its price, the demand for the commodity is ______.
Ed = 1
Ed > 1
Ed = 0
Ed < 1
Demand is inelastic for ______.
Luxury goods
Necessary goods
Normal goods
Substitute goods
From the following goods, demand for which is inelastic?
Matchboxes
Rice in West Bengal
Rolex watches
Both (a) and (b)
The demand for salt is ______.
Elasticity
Inelastic
Infinite elastic
Unitary elastic
Highly elastic
Perfectly elastic
A product's demand is ______ when the time period under consideration is longer.
Less elastic
More elastic
Perfectly elastic
Perfectly inelastic
If a good takes up a significant share of consumers' budget, its demand will be ______.
Less elastic
Highly elastic
Unitary elastic
Perfectly elastic
If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand is ______.
> 1
= 1
< 1
= O
When the percentage change in quantity demanded is equal to percentage change in price, then it is called as ______ demand.
Unit elastic
Relatively elastic
Relatively inelastic
Unique elastic
The elasticity of demand for school bag will be ______.
Elastic
Perfectly elastic
Unitary elastic
Inelastic
Radhika cannot postpone her demand for woollen clothes during winter season but at the same time can postpone her demand for a car. This is because her demand for woollen clothes is ______.
Elastic
Inelastic
Highly Elastic
Unit Elastic
ASSERTION-REASONING & STATEMENT BASED QUESTIONS Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Price elasticity of demand is a measure of the degree of responsiveness of the demand for good to changes in its price.
Reason (R): Price elasticity of demand is defined as the percentage change in demand for the good divided by percentage change in its price.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Assertion (A): When demand is ‘inelastic’, we mean that quantity demanded does not change at all in response to a price change.
Reason (R): Demand for a commodity is said to inelastic for which price change causes relatively smaller change in quantity demanded.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Assertion (A): The demand for necessary goods is generally elastic.
Reason (R): Necessary goods are bought in fixed quantities irrespective of their prices.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Read the following statements carefully and choose one of the correct alternatives given below:
Statement (1): Perfectly inelastic demand is an economic condition in which a change in the price of a good or service has no effect on the quantity demanded.
Statement (2): Perfectly elastic demand curve is parallel to the OY-axis.
Both the statements are true.
Both the statements are false.
Statement 1 is true and Statement 2 is false.
Statement 2 is true and Statement 1 is false.
Statement (1): Demand for gasoline is less elastic.
Statement (2): Demand for food is elastic.
Both the statements are true.
Both the statements are false.
Statement 1 is true and Statement 2 is false.
Statement 2 is true and Statement 1 is false.
Assertion (A): When total expenditure remains constant due to increase or decrease in price, elasticity of demand is equal to unity.
Reason (R): When price falls, total expenditure increases or price rises and total expenditure decreases, elasticity of demand is greater than one.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Short Answer Type Questions
What is meant by price elasticity of demand?
Define price elasticity of demand.
With the help of a diagram define perfectly elastic demand.
Draw a diagram showing a perfectly elastic demand curve.
When is the demand for a commodity said to be elastic?
Mention one example of inelastic demand. Give a reason in support of your answer.
What is unitary elastic demand? Draw a diagram to illustrate it.
Draw a diagram showing a perfectly elastic demand curve.
Draw a diagram showing elasticity of demand less than one.
How does the nature of a commodity affect its price elasticity of demand?
How does the availability of substitutes of a commodity affect its price elasticity of demand?
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Bicycles
Elastic
Inelastic
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Matchboxes
Elastic
Inelastic
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Rice in West Bengal
Elastic
Inelastic
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Rolex watches
Elastic
Inelastic
Select the commodities from the following which have inelastic demand:
Car
Textbooks
Cigarettes
Diamonds
Milk
Coal
Mention the degree of price elasticity of demand for the following goods:
Cosmetics
Mention the degree of price elasticity of demand for the following goods:
Medicine
Mention the degree of price elasticity of demand for the following goods:
School uniform
Mention the degree of price elasticity of demand for the following goods:
Air conditioners
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
A consumer postpones the purchase of a refrigerator till the off-season sale.
Study the table given below and state whether demand is elastic or inelastic. Give reasons for your answer.
| Price in ₹ | Total outlay ₹ |
| 5 | 25 |
| 3 | 18 |
Briefly explain the percentage method of calculating elasticity of demand.
Indicate the degree of elasticity demand of the following demand curves.
Analyse the given graphs and identify the type of elasticity of demand of:
- Picture 1
- Picture 2
Long Answer Type Questions
Explain any three types of price elasticity of demand with the help of diagrams.
Define elasticity of demand.
Discuss any four factors affecting price elasticity of demand.
Discuss any four factors affecting price elasticity of demand.
Define elasticity of demand.
Discuss any four factors affecting price elasticity of demand.
Define elasticity of demand.
Discuss any four factors affecting price elasticity of demand.
What is meant by price elasticity of demand?
How do we determine whether the demand for a particular commodity is elastic or inelastic?
Briefly explain the percentage method of calculating elasticity of demand.
With the help of a graph explain the relatively inelastic demand for a commodity.
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
The demand for salt by households.
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.
Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई 3 Elasticity of Demand QUESTION BANK [Pages 91 - 94]
Define price elasticity of demand.
Why is price elasticity of demand negative?
What is meant by elastic demand?
When is the demand of a commodity said to be inelastic?
What is meant by unitary elastic demand?
When is the demand for a commodity said to be perfectly inelastic?
When will the demand curve be parallel to x-axis?
Define perfectly elastic demand.
Comment upon the shape of the demand curve, if Ed = 0.
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
What is price elasticity of demand for life saving drugs?
What is meant by cross elasticity of demand?
Price elasticity of demand of good X is −2 and of good Y is −3. Which of the two goods has more price elasticity and why?
The value of price elasticity of demand is 0.8. Is demand elastic or inelastic? Give reason.
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is zero?
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is −1?
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is −2?
Indicate the degree of elasticity demand of the following demand curves.
State 3 factors which affect price elasticity of demand.
Draw a diagram showing elasticity of demand less than one.
Draw a diagram showing a perfectly elastic demand curve.
Explain the different types of price elasticity of demand.
What is the price elasticity of demand for the following demand curve?
Straight line demand curve parallel to X-axis.
What is the price elasticity of demand for the following demand curve?
Straight line demand curve parallel to Y-axis.
What is the price elasticity of demand for the following demand curve?
Rectangular hyperbola
How does the nature of a good affect its elasticity of demand?
How is the price elasticity of demand of a commodity is affected by the number of its substitutes.
Discuss any four factors affecting price elasticity of demand.
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
A consumer postpones the purchase of a refrigerator till the off-season sale.
Briefly explain the percentage method of calculating elasticity of demand.
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for school uniform
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for refrigerators
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for electricity
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for cigar by a chain smoker
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for diesel and petrol
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for personal computers
Sate whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for precious stones and costly jewellery
State whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Salt
Distinguish between perfectly elastic demand and perfectly inelastic demand.
Solutions for 3: Elasticity of Demand
Goyal Brothers Prakashan solutions for इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 3 - Elasticity of Demand
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Concepts covered in इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई chapter 3 Elasticity of Demand are Degrees (Or Kinds) of Price Elasticity of Demand, Introduction to Elasticity of Demand, Factors Affecting Price Elasticity of Demand, Methods of Measuring Price Elasticity of Demand, Income Elasticity of Demand.
Using Goyal Brothers Prakashan इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई solutions Elasticity of Demand exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in Goyal Brothers Prakashan Solutions are essential questions that can be asked in the final exam. Maximum CISCE इकॉनॉमिक्स [अंग्रेजी] कक्षा १० आईसीएसई students prefer Goyal Brothers Prakashan Textbook Solutions to score more in exams.
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