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

1. Price Elasticity of demand refers to the degree of responsiveness of quantity demanded of a commodity to given change in price.
2. Symbolically:
   
   

1. There is inverse relation between price and demand.
2. Price Elasticity of demand are of five type :
   1. Relatively elastic demand
   2. Relatively inelastic demand
   3. Unitary elastic demand
   4. Perfectly elastic demand
   5. erfectly inelastic demand

Income Elasticity:

1. Income elasticity of demand refers, to the degree of responsiveness of quantity demanded of the commodity to a given change in income.
2. Symbolically :
   
   

1. There is direct relation between Income and demand.
2. Income elasticity of demand are of three types:
   • Positive Income elasticity
   • Negative Income elasticity
   • Zero Income elasticity