Advertisements
Advertisements
Question
When is the demand for a good said to be elastic?
Options
When % change in demand is less than % change in price
When % change in demand is greater than % change in price
When absolute change in demand is greater than absolute change in price
None of these
Advertisements
Solution
When % change in demand is greater than % change in price
APPEARS IN
RELATED QUESTIONS
Income elasticity of demand for inferior goods is negative.
When the price of a commodity X falls by 10 percent. Its demand rises from 150 units to 180
units. Calculate is price elasticity of demand. How much should be the percentage fall in its
price so that its demand rises from 150 to 210 units?
When the price of good rises from Rs10 to Rs12 per unit, its demand falls from 25 units to 20 units. What can you say about price elasticity of demand of the good through the 'expenditure approach'?
What do you mean by a normal good?
What do you mean by an ‘inferior good’? Give some examples.
Define the following concept:
Cross Elasticity of Demand
Assertion (A): Elasticity of demand explains that one variable is influenced by another variable.
Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand.
Elasticity of demand is equal to one indicates
If quantity supplied increases by 60% due to a 50% increase in price, then elasticity of supply is ______
State with reasons whether you agree or disagree with the following statement:
The elasticity of demand gets influenced by the nature of the commodity.
