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प्रश्न
The government wants to reduce the consumption of good by 10%. The price elasticity of demand for elasticity is -0.4. The government should raise the price of elasticity by ______.
पर्याय
2%
25%
0.4%
4%
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उत्तर
The government wants to reduce the consumption of good by 10%. The price elasticity of demand for elasticity is -0.4. The government should raise the price of elasticity by 25%.
Explanation:
Percentage Change in Quantity Demanded = Price Elasticity of Demand × Percentage Change in Price
−10% = −0.4 × Percentage Change in Price
Percentage Change in Price = `(-10%)/-0.4`
= 25%
APPEARS IN
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
Match the following :
| Group 'A' | Group 'B' |
| (a) Demand and price | (1) wages |
| (b) Perfectly elastic supply | (2) Vertical supply curve |
| (c) Land | (3) Transfer income |
| (d) Unemployment allowance | (4) Horizontal supply curve |
| (e) Reserve Bank of India | (5) Inverse relation |
| (6) Rent | |
| (7) 1935 | |
| (8) Direct relation |
State whether the following statement is true or false :
Concept of ‘elasticity of demand’ is useful for the finance minister.
Choose the correct answer :
Demand of labour is _______
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Demand of electricity for domestic purpose is _________.
Match the following:
|
Group A
|
Group B
|
|
1. Cars and petrol
|
a. Elastic demand
|
|
2. Point method
|
b. Complementary
|
|
3. Necessary goods
|
c. Geometric method
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|
|
d. Inelastic demand
|
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
When the price elasticity of demand for a good equals ______.
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Discuss any three/ four factors determining price elasticity of demand.
