ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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-1
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-0.6
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-0.9
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-2
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Detailed explanation-1: -Here, elasticity of demand is zero because is response to decrease in price of the commodity, the quantity demanded remains the same, i.e., 150 units. Was this answer helpful?
Detailed explanation-2: -If the price of any commodity decreases by 20% and the demand for that commodity increases by 40% then the elasticity of demand would be highly elastic as the proportionate change of quantity demand is greater than the proportionate change of price.
Detailed explanation-3: -Expert-Verified Answer elasticity of demand is less than unity.
Detailed explanation-4: -Theory Of Consumer Behaviour When the price of a commodity falls by 2 per unit, its quantity demanded increases by 10 units. Its price elasticity of demand is (-)l. Calculate its quantity demanded at the price before change which was 10 per unit. Quantity demanded before change in price = 50 units.