Eco quz 11th cbse 3 sep

In case of _______ demand, percentage change in the quantity demanded is equal to percentage change in price.

If the proportionate change in the price of a commodity is more than the proportionate change in its quantity demand per unit of time, its price elasticity of demand is greater than unity.

• True

• False

Answer explanation

Price elasticity of demand will be less than unity (E <1) as proportionate change in demand is less than proportionate change in price.

If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand is:

• >1

• = 1

• <1

• =0

Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Elasticity of Demand is a unit free measure.

Reason (R): Price elasticity of demand is not affected by absolute change in demand or price.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is True but the Reason (R) is False

• Assertion (A) is False but the Reason (R) is True

Read the following statements carefully and choose the correct alternative from the following:

Statement 1: Flatter demand curve is more elastic at the point of intersection.

Statement 2: Demand for a commodity with large number of substitutes is more elastic

• Both the statements are True

• Bothe statements are False

• Statement 1 is true and statement 2 is false

• Statement 2 is true and statement 1 is false