Download App

B Elasticity of Demand — Economics STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsEconomicsB Elasticity of Demand2 Marks
Question
Perfectly Elastic Demand and Relatively Elastic Demand.
✓

Answer

Perfectly Elastic Demand:

  1. When with a small change in price brings infinite change in the quantity then it is said to be Perfectly Elastic demand.
  2. The numerical co-efficient is infinity (e = ∞).
  3. The demand curve is a horizontal straight line parallel to X-axis.

Image

Relatively Elastic Demand :

  1. When percentage change in quantity demanded is greater than the percentage change in price demand then it is said to be Relatively Elastic demand.
  2. The numerical co-efficient is greater than one (e > 1)
  3. The demand curve slope is flatter.

Image

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 "Distinguish between" from B Elasticity of Demand→B Elasticity of Demand — all question types→Economics STD 12 Commerce / Arts question papers→Maharashtra Board STD 12 Commerce / Arts question papers→Maharashtra Board question paper generator→

Similar questions

Developmental expenditure and Non developmental expenditure.
→
Form Utility and Service Utiliity.
→
Revenue Expenditure (Budget) and Capital Expenditure (Budget).
→
Natural Monopoly and Legal Monopoly.
→
Two Sector economy and Three Sector economy.
→
Direct Tax and Indirect tax.
→
Contraction of Supply and Decrease in Supply.
→
Fixed Deposits and Saving Deposits.
→
Extension I Expansion of Demand and Increase in Demand.
→
Knowledge Utility and Possession Utility.
→