ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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18
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30
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29
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20
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Detailed explanation-1: -Here you can find the meaning of What will be the price elasticity it original price is Rs. 5, original quantity is 8 units and changed price is Rs. 6, changed quantity is 4 units:a)2.5b)2.0c)1.5d)1.0Correct answer is option ‘A’.
Detailed explanation-2: -The correct option is D. Extension of demand. When the price of the commodity falls, its demand expands which is technically termed as the extension of demand.
Detailed explanation-3: -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-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.