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.1. Complete the following statement

 

Q.2 Give economic term

 

Q.3. Complete the correlation

 

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:

1. Relatively elastic demand and relatively inelastic demand

2. Perfectly elastic demand and perfectly inelastic demand

 

Q.6. ANSWER THE FOLLOWING QUESTIONS.

1. What is ‘elasticity of demand’? Explain the factors determining elasticity of demand

2. Explain the total outlay method of measuring elasticity of demand?

3. Explain the importance of elasticity of demand.

 

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

1. Identify and define the degrees of elasticity of demand from the following demand curve. Diagram ‘A’


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.

 

1. Demand at point ‘C’ is relatively elastic demand.

2. Demand at point ‘B’ is unitary elastic demand.

3. Demand at point ‘D’ is perfectly inelastic demand.

4. Demand at point ‘A’ is perfectly elastic demand.

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