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Suppose, there was 4% decrease in the pr...

Suppose, there was 4% decrease in the price of a good and as a result, the expenditure on the goods increased by 2%. What can you say about the elasticity of demand ?

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As total expenditure has increased with the decrease in price, the demand is said to be highly elastic.
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FULL MARKS-ELASTICITY OF DEMAND -NCERT TEXTBOOK QUESTIONS SOLVED
  1. Suppose the price elasticity of demand for a good is -0.2. If there is...

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  2. Suppose the price elasticity of demand for a good is -0.2. How will th...

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  3. Suppose, there was 4% decrease in the price of a good and as a result,...

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  4. Define price elasticity of demand.

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  5. Why is price elasticity of demand has negative sign always ?

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  6. Given the formula for measuring price elasticity of demand according t...

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  7. Give the formula for measuring price elasticity of demand according to...

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  8. Define perfectly inelastic demand.

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  9. Define perfectly elastic demand.

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  10. Demand for product X is perfectly elastic. What will be the change in ...

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  11. If ED lt 1, in which portion the point would be located on a straight ...

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  12. When is the demand of a commodity said to be inelastic ?

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  13. If price elasticity of demand for a product is equal to one, what will...

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  14. A rise in the price of a good results in an increase in expenditure on...

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  15. If two demand curves intesect, which one has the higher price elastici...

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  16. What happens to total expenditure on a commodity when its price falls ...

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  17. A poor household with no or very little income remains underfed. If th...

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  18. How will a rich household's demand for low - quality rice respond to a...

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  19. In case of a straight line demand curve meeting the two axes, the pric...

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  20. Identify the factor which generally keeps the price elasticity of dema...

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