Elasticity of Demand

A desire backed by ability to pay and willingness to pay for a commodity is called.........

When the price of petrol goes up, demand of car will _____________

The Law of demand is based on the law of _____________

If there is no change in demand for commodity ‘X’, even after rise in its price, then its demand is

• Perfectly Elastic

• Perfectly Inelastic

• Unitary elastic

• Relatively inelastic

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

The demand for salt is

• elastic

• inelastic

• zero

• maximum

State the law of demand.

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What do you mean by prefectly elastic demand?

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What are the factors affecting elasticity of demand?

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Draw demand curve of Unitary elastic demand