BOARD QUESTION PAPER : AUGUST 2024
ECONOMICS
Time: 3 Hrs.
Max. Marks: 80
Notes:
- All questions are compulsory.
- Draw neat tables/diagrams wherever necessary.
- Figures to the right indicate full marks.
- Write answers to all main questions on new pages.
Q.1. (A) Choose the correct option : (5)
1. Method adopted in micro economics analysis.
- Lumping method
- Aggregative method
- Slicing method
- Inclusive method
- (a) i, ii, iii and iv
- (b) ii, iii and iv
- (c) Only iii
- (d) Only i
Answer: (c) Only iii
2. National income is a/an ______ concept.
- stock
- final
- intermediate
- flow
- (a) i and ii
- (b) only iv
- (c) ii and iii
- (d) i, ii and iii
Answer: (b) only iv
3. The source of India's petroleum import.
- Kuwait
- Saudi Arabia
- China
- Singapore
- (a) i and ii
- (b) iii and iv
- (c) i, ii and iii
- (d) ii, iii and iv
Answer: (a) i and ii
4. Obligatory functions of the government include.
- Provision of employment.
- Maintaining internal law and order.
- Welfare measures.
- Exporting goods and services.
- (a) i and ii
- (b) iii and iv
- (c) i, ii and iii
- (d) Only ii
Answer: (d) Only ii
5. Commercial banks act as intermediaries in the financial system to ________.
- make profits
- accelerate the country's economic growth
- mobilise the saving and allocating them to various sectors of the economy
- control the credit
- (a) only i
- (b) i and ii
- (c) ii and iii
- (d) i, ii, iii and iv
Answer: (c) ii and iii
Economics Board Questions with Solution
- Economics - March 2025 - English Medium View Answer Key
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- Economics - March 2024 - Hindi Medium View Answer Key
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- Economics - March 2023 - Marathi Medium View Answer Key
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- Economics - March 2022 - Marathi Medium View Answer Key
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- Economics - July 2016 View
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- Economics - July 2018 View
- Economics - March 2019 View
(B) Complete the correlation : (5)
i. Money market : Short term funds: : _________ : Long term funds.
Answer: Capital market
ii. Table-chair : Form utility: Information about Computer : _________
Answer: Knowledge utility
iii. _________ : Cloth: : Indirect demand: Labour.
Answer: Direct demand
iv. Theoretical difficulty: Transfer payments: : _________ : Valuation of inventories.
Answer: Practical difficulty
v. Government expenditure > Government receipt : Deficit budget : : Government expenditure = Government receipt : _________
Answer: Balanced budget
(C) Find the odd word: (5)
i. Necessary goods :
Food grains, medicines, car, books.
Answer: car
ii. Types of index numbers :
Weighted index number, price index number, quantity index number, value index number.
Answer: Weighted index number
iii. Infrastructural facility :
Transport, communication, water supply, subsidies.
Answer: subsidies
iv. Types of bank accounts :
Saving A/c, D-mat A/c, recurring A/c, current A/c.
Answer: D-mat A/c
v. Theory of factor pricing :
Profit, interest, unemployment allowance, rent.
Answer: unemployment allowance
(D) Complete the following statements: (5)
1. MU of the commodity becomes negative when TU of a commodity is ______.
- (a) rising
- (b) constant
- (c) falling
- (d) zero
Answer: (c) falling
2. Symbolically, the functional relationship between demand and price can be expressed as ______.
- (a) \( D_x = f(P_x) \)
- (b) \( D_x = f(P_z) \)
- (c) \( D_x = f(Y) \)
- (d) \( D_x = f(T_x) \)
Answer: (a) \( D_x = f(P_x) \)
3. Export trends of India's foreign trade include ______.
- (a) Petroleum
- (b) Engineering goods
- (c) Gold
- (d) Fertilizers
Answer: (b) Engineering goods
4. Demand curve is parallel to 'Y' axis in the case of ______.
- (a) Perfectly elastic demand
- (b) Perfectly inelastic demand
- (c) Relatively elastic demand
- (d) Relatively inelastic demand
Answer: (b) Perfectly inelastic demand
5. Net addition made to the total revenue by selling an extra unit of a commodity is ______.
- (a) Total revenue
- (b) Average revenue
- (c) Marginal cost
- (d) Marginal revenue
Answer: (d) Marginal revenue
Q.2. (A) Identify and explain the following concepts (Any THREE): (6)
i. When the price of apples falls by 10% Vinay increases his demand for apples by 10%.
Answer:
Concept: Expansion of Demand.
Explanation: Expansion of demand refers to a rise in quantity demanded due to a fall in price alone, while other factors remain constant. Here, Vinay buys more apples because the price has fallen.
Concept: Expansion of Demand.
Explanation: Expansion of demand refers to a rise in quantity demanded due to a fall in price alone, while other factors remain constant. Here, Vinay buys more apples because the price has fallen.
ii. Ramakant paid an income tax of ₹ 80,000 during the financial year 2021-2022.
Answer:
Concept: Direct Tax.
Explanation: A direct tax is paid by the person on whom it is levied. Income tax is a direct tax levied on the income of individuals, and the burden cannot be shifted to others.
Concept: Direct Tax.
Explanation: A direct tax is paid by the person on whom it is levied. Income tax is a direct tax levied on the income of individuals, and the burden cannot be shifted to others.
iii. Madhuri deposited a lumpsum amount of ₹ 1,00,000 in the bank for the period of five years.
Answer:
Concept: Fixed Deposit (Time Deposit).
Explanation: A Fixed Deposit is a type of account where a lumpsum amount is deposited by a customer for a specified period of time. It carries a higher rate of interest compared to savings accounts.
Concept: Fixed Deposit (Time Deposit).
Explanation: A Fixed Deposit is a type of account where a lumpsum amount is deposited by a customer for a specified period of time. It carries a higher rate of interest compared to savings accounts.
iv. Sunita receives monthly pension of 30,000 from the state government.
Answer:
Concept: Transfer Payment.
Explanation: Transfer payments are payments made by the government to individuals without any corresponding production of goods or services (unilateral payments). Pension is a transfer income for the receiver.
Concept: Transfer Payment.
Explanation: Transfer payments are payments made by the government to individuals without any corresponding production of goods or services (unilateral payments). Pension is a transfer income for the receiver.
v. India purchased petroleum from Iran.
Answer:
Concept: Import Trade.
Explanation: Import trade refers to the purchase of goods and services by one country from another country. India buying petroleum from Iran is an inflow of goods from a foreign country.
Concept: Import Trade.
Explanation: Import trade refers to the purchase of goods and services by one country from another country. India buying petroleum from Iran is an inflow of goods from a foreign country.
(B) Distinguish between (Any THREE): (6)
i. Desire and Demand
Answer:
1. Desire: It is a mere wish to have something. It has no relation to ability or willingness to pay.
2. Demand: It is a desire backed by the ability to pay and willingness to pay. Demand = Desire + Ability to pay + Willingness to pay.
1. Desire: It is a mere wish to have something. It has no relation to ability or willingness to pay.
2. Demand: It is a desire backed by the ability to pay and willingness to pay. Demand = Desire + Ability to pay + Willingness to pay.
ii. Internal trade and International trade
Answer:
1. Internal Trade: Buying and selling of goods and services within the boundaries of a nation. It involves domestic currency.
2. International Trade: Buying and selling of goods and services between two or more nations. It involves foreign currency.
1. Internal Trade: Buying and selling of goods and services within the boundaries of a nation. It involves domestic currency.
2. International Trade: Buying and selling of goods and services between two or more nations. It involves foreign currency.
iii. Price index number and Quantity index number
Answer:
1. Price Index Number: It measures the general changes in the prices of goods between two periods of time.
2. Quantity Index Number: It measures the changes in the level of output or physical volume of production in the economy.
1. Price Index Number: It measures the general changes in the prices of goods between two periods of time.
2. Quantity Index Number: It measures the changes in the level of output or physical volume of production in the economy.
iv. Money market and Capital market
Answer:
1. Money Market: It is a market for lending and borrowing of short-term funds (less than 1 year). Instruments include treasury bills, commercial paper, etc.
2. Capital Market: It is a market for lending and borrowing of long-term funds (more than 1 year). Instruments include shares, debentures, bonds, etc.
1. Money Market: It is a market for lending and borrowing of short-term funds (less than 1 year). Instruments include treasury bills, commercial paper, etc.
2. Capital Market: It is a market for lending and borrowing of long-term funds (more than 1 year). Instruments include shares, debentures, bonds, etc.
v. Oligopoly and Monopoly
Answer:
1. Oligopoly: A market structure with a few sellers selling either homogeneous or differentiated products. There is interdependence among firms.
2. Monopoly: A market structure characterized by a single seller controlling the entire market supply, with no close substitutes for the product.
1. Oligopoly: A market structure with a few sellers selling either homogeneous or differentiated products. There is interdependence among firms.
2. Monopoly: A market structure characterized by a single seller controlling the entire market supply, with no close substitutes for the product.
Q.3. Answer the following (Any THREE):
i. Explain any four features of macro economics.
Answer:
1. Study of Aggregates: Macro economics deals with the study of the economy as a whole, such as National Income, Total Employment, etc.
2. General Price Level: It studies the determination and changes in the general price level and inflation/deflation.
3. Policy Oriented: It is a policy-oriented science that suggests suitable economic policies to promote economic growth and solve problems like inflation and unemployment.
4. Interdependence: It takes into account the interdependence between aggregate economic variables like income, output, employment, investment, and price level.
1. Study of Aggregates: Macro economics deals with the study of the economy as a whole, such as National Income, Total Employment, etc.
2. General Price Level: It studies the determination and changes in the general price level and inflation/deflation.
3. Policy Oriented: It is a policy-oriented science that suggests suitable economic policies to promote economic growth and solve problems like inflation and unemployment.
4. Interdependence: It takes into account the interdependence between aggregate economic variables like income, output, employment, investment, and price level.
ii. Explain the types of demand.
Answer:
1. Direct Demand: Demand for consumer goods which satisfy wants directly (e.g., clothes, food).
2. Indirect (Derived) Demand: Demand for goods needed for further production (e.g., factors of production like labor, raw material).
3. Joint (Complementary) Demand: When two or more goods are demanded together to satisfy a single want (e.g., car and petrol).
4. Composite Demand: Demand for a commodity that can be put to several uses (e.g., electricity, milk).
5. Competitive Demand: Demand for goods that are substitutes for each other (e.g., tea and coffee).
1. Direct Demand: Demand for consumer goods which satisfy wants directly (e.g., clothes, food).
2. Indirect (Derived) Demand: Demand for goods needed for further production (e.g., factors of production like labor, raw material).
3. Joint (Complementary) Demand: When two or more goods are demanded together to satisfy a single want (e.g., car and petrol).
4. Composite Demand: Demand for a commodity that can be put to several uses (e.g., electricity, milk).
5. Competitive Demand: Demand for goods that are substitutes for each other (e.g., tea and coffee).
iii. Explain any four determinants of supply.
Answer:
1. Price of the commodity: Higher price leads to higher supply, and lower price leads to lower supply (Direct relationship).
2. State of Technology: Technological improvements reduce cost of production and increase production, leading to increased supply.
3. Cost of Production: If factor prices increase, the cost of production rises, which discourages supply.
4. Government Policy: Favorable government policies like subsidies encourage supply, while heavy taxes discourage supply.
1. Price of the commodity: Higher price leads to higher supply, and lower price leads to lower supply (Direct relationship).
2. State of Technology: Technological improvements reduce cost of production and increase production, leading to increased supply.
3. Cost of Production: If factor prices increase, the cost of production rises, which discourages supply.
4. Government Policy: Favorable government policies like subsidies encourage supply, while heavy taxes discourage supply.
iv. Explain the classification of public expenditure.
Answer:
1. Revenue Expenditure: Expenditure incurred for day-to-day administration (e.g., salaries, pensions). It does not create assets.
2. Capital Expenditure: Expenditure used for creating permanent assets (e.g., construction of dams, roads) or reducing liability.
3. Developmental Expenditure: Expenditure which promotes economic growth (e.g., expenditure on health, education, industry).
4. Non-Developmental Expenditure: Expenditure on unproductive purposes like war administration, law and order.
1. Revenue Expenditure: Expenditure incurred for day-to-day administration (e.g., salaries, pensions). It does not create assets.
2. Capital Expenditure: Expenditure used for creating permanent assets (e.g., construction of dams, roads) or reducing liability.
3. Developmental Expenditure: Expenditure which promotes economic growth (e.g., expenditure on health, education, industry).
4. Non-Developmental Expenditure: Expenditure on unproductive purposes like war administration, law and order.
v. Explain any four limitations of index number.
Answer:
1. Based on Samples: Index numbers are based on a sample of items, so they may not represent the entire universe perfectly.
2. Bias in Data: If the data collected is biased or inaccurate, the index number will not reflect the true reality.
3. Misuse: Index numbers can be manipulated to show desired results by choosing specific base years or commodities.
4. Changes in Quality: Index numbers often ignore changes in the quality of products over time.
1. Based on Samples: Index numbers are based on a sample of items, so they may not represent the entire universe perfectly.
2. Bias in Data: If the data collected is biased or inaccurate, the index number will not reflect the true reality.
3. Misuse: Index numbers can be manipulated to show desired results by choosing specific base years or commodities.
4. Changes in Quality: Index numbers often ignore changes in the quality of products over time.
Q.4. State with reasons whether you agree or disagree with the following statements (Any THREE):
i. Large number of buyers and sellers is the only feature of perfect competition.
Answer: Disagree.
Reason: While a large number of buyers and sellers is a key feature, it is not the *only* feature. Perfect competition also requires: 1. Homogeneous product. 2. Free entry and exit. 3. Perfect knowledge of the market. 4. Perfect mobility of factors of production. 5. Absence of transport cost.
Reason: While a large number of buyers and sellers is a key feature, it is not the *only* feature. Perfect competition also requires: 1. Homogeneous product. 2. Free entry and exit. 3. Perfect knowledge of the market. 4. Perfect mobility of factors of production. 5. Absence of transport cost.
ii. In India the role of money market is very important.
Answer: Agree.
Reason: 1. It provides short-term funds to trade and industry. 2. It helps in the implementation of monetary policy by the central bank. 3. It helps the government to meet short-term deficits through treasury bills. 4. It promotes liquidity and profitable investment of surplus funds for banks.
Reason: 1. It provides short-term funds to trade and industry. 2. It helps in the implementation of monetary policy by the central bank. 3. It helps the government to meet short-term deficits through treasury bills. 4. It promotes liquidity and profitable investment of surplus funds for banks.
iii. Theory of welfare economics is studied in micro economics.
Answer: Agree.
Reason: 1. Micro economics deals with the efficiency in allocation of resources. 2. It studies how resources can be allocated to maximize social welfare. 3. It analyzes efficiency in production, efficiency in consumption, and overall economic efficiency.
Reason: 1. Micro economics deals with the efficiency in allocation of resources. 2. It studies how resources can be allocated to maximize social welfare. 3. It analyzes efficiency in production, efficiency in consumption, and overall economic efficiency.
iv. Supply curve slopes upward from left to right.
Answer: Agree.
Reason: 1. There is a direct relationship between price and quantity supplied. 2. When price rises, supply rises; when price falls, supply falls. 3. Profit maximization motive encourages sellers to sell more at higher prices. 4. Therefore, the supply curve has a positive slope, moving upward from left to right.
Reason: 1. There is a direct relationship between price and quantity supplied. 2. When price rises, supply rises; when price falls, supply falls. 3. Profit maximization motive encourages sellers to sell more at higher prices. 4. Therefore, the supply curve has a positive slope, moving upward from left to right.
v. Index number can be constructed without the base year.
Answer: Disagree.
Reason: 1. Index numbers measure changes in a variable relative to a reference period. 2. This reference period is called the base year. 3. Without a base year (denoted as '0'), we cannot compare the current year's (denoted as '1') data to measure the extent of change. 4. A base year is essential for calculation.
Reason: 1. Index numbers measure changes in a variable relative to a reference period. 2. This reference period is called the base year. 3. Without a base year (denoted as '0'), we cannot compare the current year's (denoted as '1') data to measure the extent of change. 4. A base year is essential for calculation.
Q.5. Study the following table, figure, passage and answer the questions given below it (Any TWO):
(4 Marks each)
i. Study the table:
Bill : No. 05
Table No. 01
Date : 14.08.2018
Time : 10:30 A.M.
Staff : Amit
GST. No. 27AAXPN3502E128
CUST. SIGN AUTHORISED SIGNATORY
Table No. 01
Date : 14.08.2018
Time : 10:30 A.M.
Staff : Amit
| S.No. | Item Name | Qty. | Rate | Amount |
|---|---|---|---|---|
| 1 | Register | 02 | 42.00 | 84.00 |
| 2 | Pen | 10 | 08.00 | 80.00 |
| 3 | Pencil | 10 | 04.40 | 44.00 |
| 4 | Rubber/Eraser | 10 | 04.40 | 44.00 |
| 5 | Scale | 03 | 08.00 | 24.00 |
| Sub Total = | 276.00 | |||
| SGST 6% = | 16.56 | |||
| CGST 6% = | 16.56 | |||
| Total = | 309.12 | |||
CUST. SIGN AUTHORISED SIGNATORY
Questions:
- Write the short form for goods and service tax. (1)
- What is the percentage of SGST and CGST in the above bill? (1)
- What is the basic price of pen in the above bill? (1)
- What is the GST No. of the seller? (1)
Answers:
1. GST
2. 6% each (Total 12%)
3. ₹ 08.00
4. 27AAXPN3502E128
1. GST
2. 6% each (Total 12%)
3. ₹ 08.00
4. 27AAXPN3502E128
ii. Observe the given diagram and answer the following questions:
- What is represented on 'X' axis in the above diagram? (1)
- Which price shows equilibrium price of demand and supply? (1)
- What is represented on 'Y' axis in the above diagram? (1)
- Which point represents the demand and supply equilibrium point in above diagram? (1)
Answers:
1. Quantity Demanded and Quantity Supplied (in Kg)
2. ₹ 300
3. Price (in ₹)
4. Point E
1. Quantity Demanded and Quantity Supplied (in Kg)
2. ₹ 300
3. Price (in ₹)
4. Point E
iii. On-Demand Economy:
On-demand economy is defined as the economic activity created by digital market places and technology companies to fulfill consumer demand via immediate access to goods and services. The on-demand economy is also sometimes referred as the "access economy" because these companies provide outlets to the wholesalers, retailers and also consumers, the facilities of goods and services.
With consumers behaviour changing to prioritize fast, simple and efficient experiences, convenience, speed and simplicity are at the top of the priority list to have their needs met. The case of filling spare time and picking and choosing one's hours is also appealing to those with skills to meet growing consumer demand. So the on-demand economy is growing at an unparalleled pace.
Many of the popular services people use on a regular basis nowadays are examples of the on-demand economy. Ride-sharing platforms Uber and Ola, as well as grocery delivery services such as Big basket, Dunzo and Reliance JIO Mart are just some examples of services with the on-demand economy.
With consumers behaviour changing to prioritize fast, simple and efficient experiences, convenience, speed and simplicity are at the top of the priority list to have their needs met. The case of filling spare time and picking and choosing one's hours is also appealing to those with skills to meet growing consumer demand. So the on-demand economy is growing at an unparalleled pace.
Many of the popular services people use on a regular basis nowadays are examples of the on-demand economy. Ride-sharing platforms Uber and Ola, as well as grocery delivery services such as Big basket, Dunzo and Reliance JIO Mart are just some examples of services with the on-demand economy.
Questions:
- What is on-demand economy sometimes referred? (1)
- Write any two examples based according to on-demand economy? (1)
- Write your opinion on the above passage. (2)
Answers:
1. It is sometimes referred to as the "access economy".
2. Examples: Uber, Ola, Big basket, Dunzo, Reliance JIO Mart (Any two).
3. Opinion: The on-demand economy has revolutionized how we consume services by prioritizing speed and convenience. It creates flexible employment opportunities but also heavily relies on technology adoption by the public. It is the future of urban commerce.
1. It is sometimes referred to as the "access economy".
2. Examples: Uber, Ola, Big basket, Dunzo, Reliance JIO Mart (Any two).
3. Opinion: The on-demand economy has revolutionized how we consume services by prioritizing speed and convenience. It creates flexible employment opportunities but also heavily relies on technology adoption by the public. It is the future of urban commerce.
Q.6. Answer the following questions in detail (Any TWO):
i. Explain any two methods of measuring national income.
Answer:
1. Output Method (Product Method):
This method approaches national income from the production side. It measures the total value of final goods and services produced in an economy during a year. It can be calculated using two approaches:
2. Income Method:
This method measures national income from the distribution side. It sums up all factor incomes earned by the owners of factors of production (Land, Labor, Capital, Entrepreneur) during a year.
3. Expenditure Method (Optional Mention): Sum of all expenditure incurred on final goods and services (C + I + G + (X-M)).
1. Output Method (Product Method):
This method approaches national income from the production side. It measures the total value of final goods and services produced in an economy during a year. It can be calculated using two approaches:
- Final Goods Approach: Sum of market value of all final goods and services produced.
- Value Added Approach: Sum of value added at each stage of production to avoid double counting. Value Added = Value of Output - Value of Intermediate Consumption.
2. Income Method:
This method measures national income from the distribution side. It sums up all factor incomes earned by the owners of factors of production (Land, Labor, Capital, Entrepreneur) during a year.
- NI = Rent + Wages + Interest + Profit + Mixed Income + Net Income from Abroad.
- It includes compensation of employees, operating surplus, and mixed income of self-employed.
3. Expenditure Method (Optional Mention): Sum of all expenditure incurred on final goods and services (C + I + G + (X-M)).
ii. Explain the law of diminishing marginal utility and write its assumptions.
Answer:
Statement of the Law:
According to Prof. Alfred Marshall, "Other things remaining constant, the additional benefit which a person derives from a given increase in his stock of a thing, diminishes with every increase in the stock that he already has."
Explanation: As a consumer consumes more units of a commodity, the Marginal Utility (MU) derived from each successive unit goes on diminishing.
Assumptions:
1. Rationality: The consumer is rational and aims to maximize satisfaction.
2. Cardinal Measurement: Utility can be measured numerically.
3. Homogeneity: All units of the commodity consumed are identical in size, shape, color, and taste.
4. Continuity: Consumption is continuous without any time gap.
5. Reasonability: The size of the unit must be reasonable (not too big or too small).
6. Constancy: Income, taste, habits, and preferences remain constant.
7. Divisibility: The commodity is divisible into small units.
Statement of the Law:
According to Prof. Alfred Marshall, "Other things remaining constant, the additional benefit which a person derives from a given increase in his stock of a thing, diminishes with every increase in the stock that he already has."
Explanation: As a consumer consumes more units of a commodity, the Marginal Utility (MU) derived from each successive unit goes on diminishing.
Assumptions:
1. Rationality: The consumer is rational and aims to maximize satisfaction.
2. Cardinal Measurement: Utility can be measured numerically.
3. Homogeneity: All units of the commodity consumed are identical in size, shape, color, and taste.
4. Continuity: Consumption is continuous without any time gap.
5. Reasonability: The size of the unit must be reasonable (not too big or too small).
6. Constancy: Income, taste, habits, and preferences remain constant.
7. Divisibility: The commodity is divisible into small units.
iii. Explain the concept of price elasticity of demand and explain the types of price elasticity of demand.
Answer:
Concept: Price Elasticity of Demand refers to the degree of responsiveness of quantity demanded to a change in its price. Formula: \( Ed = \frac{\% \Delta Q}{\% \Delta P} \)
Types of Price Elasticity of Demand:
1. Perfectly Elastic Demand (Ed = \(\infty\)): A slight change in price leads to an infinite change in quantity demanded. The demand curve is a horizontal line parallel to the X-axis.
2. Perfectly Inelastic Demand (Ed = 0): A change in price has no effect on quantity demanded. The demand curve is a vertical line parallel to the Y-axis.
3. Unitary Elastic Demand (Ed = 1): The percentage change in quantity demanded is exactly equal to the percentage change in price. The curve is a rectangular hyperbola.
4. Relatively Elastic Demand (Ed > 1): The percentage change in quantity demanded is greater than the percentage change in price. The curve is flatter.
5. Relatively Inelastic Demand (Ed < 1): The percentage change in quantity demanded is less than the percentage change in price. The curve is steeper.
Concept: Price Elasticity of Demand refers to the degree of responsiveness of quantity demanded to a change in its price. Formula: \( Ed = \frac{\% \Delta Q}{\% \Delta P} \)
Types of Price Elasticity of Demand:
1. Perfectly Elastic Demand (Ed = \(\infty\)): A slight change in price leads to an infinite change in quantity demanded. The demand curve is a horizontal line parallel to the X-axis.
2. Perfectly Inelastic Demand (Ed = 0): A change in price has no effect on quantity demanded. The demand curve is a vertical line parallel to the Y-axis.
3. Unitary Elastic Demand (Ed = 1): The percentage change in quantity demanded is exactly equal to the percentage change in price. The curve is a rectangular hyperbola.
4. Relatively Elastic Demand (Ed > 1): The percentage change in quantity demanded is greater than the percentage change in price. The curve is flatter.
5. Relatively Inelastic Demand (Ed < 1): The percentage change in quantity demanded is less than the percentage change in price. The curve is steeper.
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