ECONOMICS (CBSE/UGC NET)

ECONOMICS

ELASTICITY OF DEMAND

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

After more employers allow employees to telecommute, will the demand curve for cars be more elastic or more inelastic?

A	More elastic
B	More inelastic
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -Demand for a new car is most likely be elastic as the purchase of new car is dependent on several factors and it can be delayed. The demand for a particular model of car is in turn highly elastic because of the presence of many substitutes.

Detailed explanation-2: -The demand curve for soap after wide understanding that bacteria and other organisms cause and spread disease More inelastic, because soap is viewed more as a necessity than a luxury.

Detailed explanation-3: -For example, the demand for automobiles would, in the short term, be somewhat elastic, as the purchase of a new vehicle can often be delayed. The demand for a specific model automobile would likely be highly elastic, because there are so many substitutes.

Detailed explanation-4: -A product with high price elasticity of demand will see demand fall sharply when prices rise. For the product with high elasticity of demand, the downward-sloping demand curve appears flatter, and for every change in price, there is a large change to the quantity demanded.

There is 1 question to complete.