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प्रश्न
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.
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उत्तर
If a customer waits to buy a car in order to take advantage of greater year-end discounts, the car will have 'elastic demand' because commodities with postponed consumption tend to have elastic demand, meaning that a slight increase in price will force customers to defer their previously planned consumption.
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संबंधित प्रश्न
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
Write Short note on the following.
Ratio method of measuring price elasticity of demand ?
State whether the following statements are TRUE or FALSE :
The demand of foodgrains is inelastic.
What is the implication of a vertical demand curve?
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.
How does the availability of substitutes of a commodity affect its price elasticity of demand?
When will the demand curve be parallel to x-axis?
What type of demand characterizes necessity goods compared to luxury goods?
