 # Economics

## Broadly discuss the measurements of price elasticity of demand.

Measurement of Price Elasticity of Demand:  There are 5 different measurements of Price Elasticity of Demand. They are as follows: Perfectly Inelastic Demand (Elasticity = 0) Perfectly Elastic Demand (Elasticity = Infinity) Unit Elasticity of Demand (Elasticity = 1) Relatively Inelastic Demand (Elasticity < 1) Relatively Elastic Demand (Elasticity > 1) These measurements has been …

## Explain Cross Elasticity of Demand.

Cross Elasticity of Demand : Cross elasticity of demand occurs when a change in price of a commodity brings the change in demand of another commodity. The cross elasticity of demand for two goods X and Y, is the ratio of the percentage change of quantity purchased of X to the percentage change in price …

## Explain Income elasticity of demand.

Income elasticity of demand : A persons demand for a good may change with hisher change in income. The income elasticity of demand is the ratio of percentage change quantity purchased per time to the percentage change in income. Thus, Here, em = Income elasticity of demand             m = initial income             Q = …

## Explain Price elasticity of demand

Price Elasticity of Demand : Price elasticity of demand measures the quantitative response of demand to a change in price. This is the ratio of percentage change in demand to the percentage change in price. So the price elasticity of demand is, Here,  ep = price elasticity of demand             ΔQ = change in quantity …

## What is elasticity, elasticity of demand, elastic demand, and inelastic demand?

Elasticity : In economics, elasticity is the ratio of the percentage change in one variable to the percentage change in another variable. Elasticity is a popular tool among empiricists because it is independent of units and thus simplifies the analysis. …  Elasticity of Demand : The demand of a commodity depends …

## Show the market demand for a commodity with example and explanation.

Market Demand For a Commodity : The market demand for a commodity means the total demand for a commodity made by all the individuals in the market. The market demand for a commodity gives the alternative amounts of a commodity demanded per time period, at various alternative prices, by all the individuals in the market. …

## What is shift in demand curve? Explain with example.

Shift in Demand Curve : Shift in demand curve means the change in demand curve. This change will have to be for the change in ceteris paribus. That is when the price of a commodity remains constant and the other things which can affect the demand of the commodity changes, a shift can be found …

## Explain the law of negatively sloped demand curve.

Law of Negatively Sloped Demand Curve:             First, obtain the demand schedule; the formula is,                                                 Qdx = f(Px)             Considering, an individual demand function for a commodity X is given by,                                                 Qdx =8 – Px    cet.par.             Here, Qdx  is the quantity demanded and Px is the price …

## Draw and explain a demand curve by obtaining a demand schedule.

Obtaining Demand Schedule: To obtain the demand schedule the formula is,                                                 Qdx = f(Px) Considering, an individual demand function for a commodity X is given by,                                                 Qdx =8 – Px    cet.par. Here, Qdx  is the quantity demanded and Px is the price of X commodity. Now substituting various prices of X in …

## What is / Define Demand, Demand Schedule and Demand Curve.

Demand:   The desire for a commodity of an individual or a group will be called their demand when they are able to pay for that commodity. That is demand is desire with account to pay. In Benham’s words, “Demand for anything at a given price is the amount of it which will be bought per …

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