Download App

Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Explain price elasticity of demand.
✓

Answer

Price elasticity of demand is the measure of the degree of responsiveness of the demand for a good to the changes in its price. It is defined as the percentage change in the demand for a good divided by the percentage change in its price.$\text{e}_\text{d}=\frac{\text{percentage change in the demande for a good}}{\text{percentage change in the price for a good}}$
$\text{e}_\text{d}=\frac{\triangle\text{Q}}{\triangle\text{P}}\times\frac{\text{P}}{\text{Q}}$
Where,$\triangle\text{Q}=\text{Q}_2-\text{Q}_1,\ \text{change in demande}$
$\triangle\text{P}=\text{P}_2-\text{P}_1,\ \text{change in price}$
P = initial price Q = initial quantity

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Theory of consumer behaviour→Theory of consumer behaviour — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Explain why there are only a few firms in an oligopoly market.
→
A consumer consumes only two goods X and Y. The Marginal Rate of Substitution is 1. Prices of X and Y are ₹ 3 and ₹ 4 per unit respectively. Is the consumer in equilibrium? What will be further reaction of the consumer? Give reason.
→
Explain the implication of 'freedom of entry and exit to the firms' under perfect competition.
→
Explain the central problem of ''choice of technique''.
→
Why is Production Possibilities Curve concave? Explain.
→
Supply.
→
Giving examples, explain the meaning of cost in economics.
→
A person's marginal utility schedule is given below. Derive their total utility schedule.
Amount Consumed
Marginal Utility
0
-
1
10
2
25
3
38
4
48
5
55
→
Explain why the equilibrium price of a commodity is determined at that level of output at which its demand equals its supply.
→
Why is the number of firms small in oligopoly? Explain.
→