Advertisement

WHAT ARE THE TYPES OF PRICE ELASTICITY OF DEMAND? Very important



Meaning: -Price elasticity of demand is generally known as elasticity of demand. Elasticity of demand show how much expansion and contraction of demand takes place due to fall or rise in price. Elasticity of demand is the proportionate change in quantity demanded of a commodity as a result of proportionate change in its price. In other words, Elasticity of demand is the ratio of percentage change in quantity demanded of a commodity to the percentage change in its price.

Symbolically,                                                                                                 
Ed =   %change in quantity demanded
% change in price

The following are the different types of price elasticity of demand:

1.      Unitary Elastic Demand: - When a change in price of commodity brings about change in the demand of that commodity is exactly the same proportion, it is called as unitary elastic demand. For instance, a 10% rise in price of a commodity leads to a 10% fall in demand of that commodity.
               
                                Ed =    %change in quantity demanded    =  1
                   % change in price

2.      Relatively Elastic Demand: -When a change in price of a commodity brings about more than proportionate change in the demand of that commodity, it is called as relatively elastic demand. For instance, a 10% rise in price of a commodity leads to 20% fall in demand of that commodity.

Ed =    %change in quantity demanded    ≥ 1
% change in price

3.      Relatively Inelastic Demand: -When a change in price of a commodity brings about lessthan proportionate change in the demand of that commodity, it is called as relatively inelastic demand. For instance, a 10% rise in price of a commodity leads to 5% fall in demand of that commodity.

Ed =    %change in quantity demanded    ≤  1
% change in price

4.      Perfectly(Infinite) in elastic demand: -When a slight change in the price of a commodity brings about an infinite change in the demand of that commodity, it is called as Perfectly elastic demand. For instance, a 10% rise in price of a commodity may lead to infinite fall in demand of that commodity. The perfectly elastic demand curve is parallel to X-axis.

Ed =   %change in quantity demanded     =  ∞
% change in price

5.      Perfectly Inelastic demand: - When a change in price has noeffect on the quantity demanded of that commodity, it is called as perfectly inelastic demand. For instance, a 10% rise in price will have not effect on the quantity demanded. The quantity demanded remains the same irrespective of rise or fall in price of that commodity.

Ed =    %change in quantity demanded      = 0
% change in price

PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each (GST extra)

SUBJECTS

HINDI ENTIRE PAPER SOLUTION

MARATHI PAPER SOLUTION

SSC MATHS I PAPER SOLUTION

SSC MATHS II PAPER SOLUTION

SSC SCIENCE I PAPER SOLUTION

SSC SCIENCE II PAPER SOLUTION

SSC ENGLISH PAPER SOLUTION

SSC & HSC ENGLISH WRITING SKILL

HSC ACCOUNTS NOTES

HSC OCM NOTES

HSC ECONOMICS NOTES

HSC SECRETARIAL PRACTICE NOTES

2019 Board Paper Solution

HSC ENGLISH SET A 2019 21st February, 2019

HSC ENGLISH SET B 2019 21st February, 2019

HSC ENGLISH SET C 2019 21st February, 2019

HSC ENGLISH SET D 2019 21st February, 2019

SECRETARIAL PRACTICE (S.P) 2019 25th February, 2019

HSC XII PHYSICS 2019 25th February, 2019

CHEMISTRY XII HSC SOLUTION 27th, February, 2019

OCM PAPER SOLUTION 2019 27th, February, 2019

HSC MATHS PAPER SOLUTION COMMERCE, 2nd March, 2019

HSC MATHS PAPER SOLUTION SCIENCE 2nd, March, 2019

SSC ENGLISH STD 10 5TH MARCH, 2019.

HSC XII ACCOUNTS 2019 6th March, 2019

HSC XII BIOLOGY 2019 6TH March, 2019

HSC XII ECONOMICS 9Th March 2019

SSC Maths I March 2019 Solution 10th Standard11th, March, 2019

SSC MATHS II MARCH 2019 SOLUTION 10TH STD.13th March, 2019

SSC SCIENCE I MARCH 2019 SOLUTION 10TH STD. 15th March, 2019.

SSC SCIENCE II MARCH 2019 SOLUTION 10TH STD. 18th March, 2019.

SSC SOCIAL SCIENCE I MARCH 2019 SOLUTION20th March, 2019

SSC SOCIAL SCIENCE II MARCH 2019 SOLUTION, 22nd March, 2019

XII CBSE - BOARD - MARCH - 2019 ENGLISH - QP + SOLUTIONS, 2nd March, 2019

HSC Maharashtra Board Papers 2020

(Std 12th English Medium)

HSC ECONOMICS MARCH 2020

HSC OCM MARCH 2020

HSC ACCOUNTS MARCH 2020

HSC S.P. MARCH 2020

HSC ENGLISH MARCH 2020

HSC HINDI MARCH 2020

HSC MARATHI MARCH 2020

HSC MATHS MARCH 2020


SSC Maharashtra Board Papers 2020

(Std 10th English Medium)

English MARCH 2020

HindI MARCH 2020

Hindi (Composite) MARCH 2020

Marathi MARCH 2020

Mathematics (Paper 1) MARCH 2020

Mathematics (Paper 2) MARCH 2020

Sanskrit MARCH 2020

Sanskrit (Composite) MARCH 2020

Science (Paper 1) MARCH 2020

Science (Paper 2)

Geography Model Set 1 2020-2021


MUST REMEMBER THINGS on the day of Exam

Are you prepared? for English Grammar in Board Exam.

Paper Presentation In Board Exam

How to Score Good Marks in SSC Board Exams

Tips To Score More Than 90% Marks In 12th Board Exam

How to write English exams?

How to prepare for board exam when less time is left

How to memorise what you learn for board exam

No. 1 Simple Hack, you can try out, in preparing for Board Exam

How to Study for CBSE Class 10 Board Exams Subject Wise Tips?

JEE Main 2020 Registration Process – Exam Pattern & Important Dates


NEET UG 2020 Registration Process Exam Pattern & Important Dates

How can One Prepare for two Competitive Exams at the same time?

8 Proven Tips to Handle Anxiety before Exams!

BUY FROM PLAY STORE

DOWNLOAD OUR APP

HOW TO PURCHASE OUR NOTES?

S.P. Important Questions For Board Exam 2022

O.C.M. Important Questions for Board Exam. 2022

Economics Important Questions for Board Exam 2022

Chemistry Important Question Bank for board exam 2022

Physics – Section I- Important Question Bank for Maharashtra Board HSC Examination

Physics – Section II – Science- Important Question Bank for Maharashtra Board HSC 2022 Examination

Important-formula



THANKS