CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

On the basis of graph given above answer next 5 questions.
At curve D $$D_2$$ elasticity is __________.

913444_803533e0e6e54c06aea4c58cc5073ac3.png


A
Ed>1
loader
B
Ed<1
loader
C
Ed=1
loader
D
Ed=
loader

Solution

The correct option is A $$E_d\,>\,1$$
In the given curve x-axis shows quantity and y-axis shows price.
$$\Rightarrow$$  In given curve $$DD_2$$, we can see its  line where quantity of demand and price changes .
$$\Rightarrow$$  The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price.
$$\Rightarrow$$  At curve $$DD_2$$ a product or service's demanded quantity changes by a greater percentage than changes in price.
$$\Rightarrow$$   $$E_d=\dfrac{\%change\,in\,quantity}{\%change\,in\,price}$$
Here,
% Change in quantity $$>$$% Change in price.
$$\therefore$$ $$E_d>1$$

Maths

Suggest Corrections
thumbs-up
 
0


similar_icon
Similar questions
View More



footer-image