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

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsEconomicsB Elasticity of Demand2 Marks
Question
Relatively elastic demand and Relatively inelastic demand.
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Answer


Relatively Elastic Demand
  1. When percentage change in quantity demanded is greater than the percentage change in price then demand is said to be Relatively Elastic demand.
  2. The numerical co-efficient is greater than one (e > 1).
  3. Demand curve slopes flatter.
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  1. Example : luxury goods like LCD, TV, Car etc.
Relatively inelastic demand.
  1. When percentage change in quantity demanded is less than percentage change in price then demand is said to be Relatively Inelastic demand.
  2. The numerical co-efficient is less than one (e < 1).
  3. Demand curve slopes steeper.
Image

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