Elasticity of Demand
Economics ⇒ Consumer and Producer Behaviour
Elasticity of Demand starts at 11 and continues till grade 12.
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See sample questions for grade 12
A 10% decrease in the price of a good leads to a 5% increase in quantity demanded. What is the price elasticity of demand?
A 12% increase in the price of a good leads to a 12% decrease in quantity demanded. What is the price elasticity of demand?
A 15% increase in income leads to a 30% increase in demand for a good. What is the income elasticity of demand?
A 20% fall in the price of a good leads to a 20% rise in quantity demanded. What is the price elasticity of demand?
A 5% increase in the price of tea leads to a 2% increase in the quantity demanded of coffee. What is the cross elasticity of demand?
A firm increases the price of its product and finds that total revenue increases. What can you say about the price elasticity of demand for its product?
Define price elasticity of demand.
Describe the relationship between total revenue and price elasticity of demand.
Explain the concept of cross elasticity of demand with an example.
Explain the concept of perfectly inelastic demand with an example.
Explain the difference between elastic and inelastic demand.
Explain the importance of elasticity of demand for a producer.
Explain why the demand for luxury cars is more elastic than the demand for essential medicines.
Explain with an example what is meant by unitary elastic demand.
If the price of a commodity increases by 10% and its quantity demanded falls by 20%, what is the price elasticity of demand?
If the price of a good increases from ₹50 to ₹60 and the quantity demanded decreases from 100 units to 80 units, calculate the price elasticity of demand using the percentage method.
If the price of a good rises by 8% and its quantity demanded falls by 4%, what is the price elasticity of demand?
If the price of a product falls from ₹100 to ₹80 and the quantity demanded increases from 50 units to 70 units, calculate the price elasticity of demand using the midpoint method.
State one factor that affects the price elasticity of demand for a commodity.
State one reason why the demand for salt is inelastic.
