Chapter-6 Elasticity of Demand

DEFINATION OF ELASTICITY OF DEMAND

“The elasticity of demand measures the responsiveness of the quantity demanded of a good, to change in its price, price of other goods and changes in consumer’s income.”

 

PRICE ELASTICITY OF DEMAND: “The price elasticity of demand is the degree of responsiveness of the demand for a commodity to change in its price.”

 

INCOME ELASTICITY OF DEMAND: “The Cross elasticity of demand is the degree of responsiveness of the demand for a commodity X to change in its price of commodity Y.”

 

CROSS ELASTICITY OF DEMAND: “The Cross elasticity of demand is the degree of responsiveness of the demand for a commodity X to change in its price of commodity Y.”

 

  • PERFECTLY ELASTIC DEMAND: “It is a situation where demand for the commodity that is price remains constant. ED=INFINITE.

 

SCHEDULE:

PRICE (IN Rs) Demand (in units)
30 200
30 400

 

  • PERFECTLY IN ELASTIC DEMAND: When demand for a commodity remain constant in response to change in price of the commodity. ED=0

 

SCHEDULE:

PRICE (IN Rs) Demand (in units)
30 200
40 200

 

  • UNIT ELASTIC DEMAND: When percentage change in demand is equal to percentage change in price, then demand for the commodity is said to be unit elastic. ED=1

 

SCHEDULE

 

PRICE (IN Rs) Demand (in units)
20 100
30 50

 

  • MORE THAN UNIT ELASTIC DEMNAD: When percentage change in demand is more than percentage change in price, the demand is said to be more than unit elastic demand. ED>1

 

SCHEDULE:

PRICE (IN Rs) Demand (in units)
20 400
30 100

 

DEFINATION OF ELASTICITY OF DEMAND

 

“The elasticity of demand measures the responsiveness of the quantity demanded of a good, to change in its price, price of other goods and changes in consumer’s income.”

 

PRICE ELASTICITY OF DEMAND: “The price elasticity of demand is the degree of responsiveness of the demand for a commodity to change in its price.”

 

INCOME ELASTICITY OF DEMAND: “The Cross elasticity of demand is the degree of responsiveness of the demand for a commodity X to change in its price of commodity Y.”

 

CROSS ELASTICITY OF DEMAND: “The Cross elasticity of demand is the degree of responsiveness of the demand for a commodity X to change in its price of commodity Y.”

 

  • PERFECTLY ELASTIC DEMAND: “It is a situation where demand for the commodity that is price remains constant. ED=INFINITE.

 

SCHEDULE:

PRICE (IN Rs) Demand (in units)
30 200
30 400

 

PERFECTLY IN ELASTIC DEMAND: When demand for a commodity remain constant in response to change in price of the commodity. ED=0

 

SCHEDULE:

PRICE (IN Rs) Demand (in units)
30 200
40 200

 

  • PURCHASE FULL EXPLAINED PDF NOTES 10 PER CHAPTER ONLY
  • INTERESTED STUDENT WHATSAPP US ON 9873611140 (NOT FOR CALL)
  • E -Mail [email protected] .

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!