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प्रश्न
How does the availability of substitutes of a commodity affect its price elasticity of demand?
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उत्तर
The price elasticity of demand for goods depends on the availability of substitutes in the market. The more substitutes available, the higher the price elasticity of demand for that good. This is because when prices change, buyers can easily shift from one substitute to another.
संबंधित प्रश्न
A 5 percent fall in the price of a good raises its demand from 300 units to 318 units. Calculate its price elasticity of demand.
Choose the correct answer :
Perfectly elastic demand curve is _________.
State whether the following statements are TRUE or FALSE :
The demand of foodgrains is inelastic.
The account in which the specific amount is deposited per month regularly is known as ______.
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
|
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.
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
The price of Y falls from ₹ 8 to ₹ 6. The quantity demanded increases from 100 units to 125 units. The price electricity of demand will be ______.
When the price elasticity of demand for a good equals ______.
Which of the following is the most likely reason for the relatively high elasticity of bottled water?
Assertion (A): Demand for a commodity with large number of substitutes with be less elastic.
Reason (R): With large number of substitutes, even a small rise in its price will induce the buyers to go for its substitutes.
The nature of a commodity determines its price elasticity of demand. Explain.
State 3 factors which affect price elasticity of demand.
How does the nature of a commodity affect its price elasticity of demand?
How does the nature of a good affect its elasticity of demand?
What type of demand characterizes necessity goods compared to luxury goods?
What effect do habitual consumption patterns have on price elasticity of demand?
