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प्रश्न
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
The demand for salt by households.
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उत्तर
Because households only spend a relatively small percentage of their income on salt, their demand will be inelastic without near alternatives. The consumer will continue to purchase about the same amount of salt even if the price increases because it won't have much of an impact on their budget. As a result, there is no elastic demand for these commodities.
संबंधित प्रश्न
Explain the effect of the following on the price elasticity of demand of a commodity:
(i) Number of substitutes
(ii) Nature of the commodity
State whether the following statement is true or false :
Concept of ‘elasticity of demand’ is useful for the finance minister.
Define or explain the following concepts (Any THREE):
Stock
The account in which the specific amount is deposited per month regularly is known as ______.
Match the following:
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Group A
|
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
|
Explain briefly the factors on which elasticity of demand depends.
Comment upon the shape of the demand curve, if Ed = 0.
How does the nature of a good affect its elasticity of demand?
What type of demand characterizes necessity goods compared to luxury goods?
Which statement correctly describes the relationship between postponement and price elasticity?
