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### Chapter 3 - (B) ELASTICITY OF DEMAND [Latest edition] Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board

Chapter 3 - (B) ELASTICITY OF DEMAND [Latest edition]

Q.4. Assertion and Reasoning type of question

1. Assertion (A): Degree of price elasticity is less than one in case of relatively inelastic demand.

Reasoning (R): Change in demand is less than the change in price. Solution

2. Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity

Reasoning (R): Changes in consumer income leads to a change in the quantity demanded Solution

3. Assertion (A): Elasticity of demand explains that one variable is influenced by another variable.

Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand. Solution

Q.5. Distinguish between:

Q.6. ANSWER THE FOLLOWING QUESTIONS.

Q.7. Observe the following figure and answer the questions:

2. In the following diagram, AE is the linear demand curve of a commodity. On the basis of the given diagram state whether the following statement is True or False. Give a reason for your answer.