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प्रश्न
True or False with Reason:
When the percentage increase in demand of a commodity is more than percentage increase in price, then demand curve is steeper.
चूक किंवा बरोबर
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उत्तर
This statement is false.
Explanation:
- If percentage increase in demand is more than percentage increase in price, then price elasticity of demand is greater than one.
- Highly elastic demand is represented by a flatter demand curve, not a steeper one.
- A steeper demand curve represents less elastic demand, where percentage change in demand is less than percentage change in price.
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