Question

Demand curve for a commodity will be negatively sloped but steeper when the demand rises by 15% due to a fall in its price from ₹ 40 to ______.

पर्याय

• ₹ 38

• ₹ 36

• ₹ 34

• ₹ 32

Answer 1

Demand curve for a commodity will be negatively sloped but steeper when the demand rises by 15% due to a fall in its price from ₹ 40 to ₹ 32.

Explanation:

When the price falls to ₹ 32, it implies a 20% decrease in price, while the amount requested only increases by 15%. Inelastic demand occurs when the percentage change in demand is less than the percentage change in price. This results in a steeper demand curve on a graph.