Advertisements
Advertisements
Question
With the help of a graph explain the relatively inelastic demand for a commodity.
Advertisements
Solution
Relatively inelastic demand for a commodity:
When a large change in the price does not bring so much change in the demand, the demand is said to be inelastic. In this situation, the percentage change in demand is lesser than the percentage change in price. For example, a fall in the price of 10% leads to a rise in demand by only 5%. Such a situation will arise when the demand for a commodity is very urgent. Here, the numerical value of price elasticity of demand will be E < 1. The slope of the inelastic demand curve is steep.
APPEARS IN
RELATED QUESTIONS
Draw a diagram showing a perfectly elastic demand curve.
Degrees of price elasticity of demand is of ______ types.
In case of Ed = 0, demand curve is ______.
From the following goods, demand for which is inelastic?
For the following list of goods state whether the demand is elastic or inelastic. Give reasons:
Bicycles
Mention the degree of price elasticity of demand for the following goods:
School uniform
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
Indicate the degree of elasticity demand of the following demand curves.
What is the price elasticity of demand for the following demand curve?
Rectangular hyperbola
A list of goods is given below. state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for school uniform
