Chapter 4 - (B) Elasticity Of Demand Economics Solutions for Class 12 Commerce Economics

Chapter 4 - (B) Elasticity Of Demand

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets:

Match the following:

State whether the following statements are TRUE and FALSE.

1. Demand for luxuries is elastic.

2. Perfectly inelastic demand curve is parallel to the X axis.

3.  Total outlay is price multiplied by quantity.

4. Unitary Elastic Demand rarely occurs in practice.

5. Concept of Elasticity of Demand is useful for finance minister.

Define or explain the following concepts:

1. Cross Elasticity of Demand

2. Unitary Elastic Demand

3. Income Elasticity of Demand

4. Elastic Demand

Give reasons or explain the following statements:

1. Demand for necessities is inelastic.

2. Demand for habitual goods is inelastic.

3. Concept of Elasticity of Demand helps trade union leaders.

4. Demand for commodity having multiple uses has elastic demand.

5. Demand for goods having snob appeal has elastic demand.

Distinguish between:

1. Perfectly elastic demand and perfectly inelastic demand

2. Relatively elastic demand and relatively inelastic demand

Write short notes on:

1. Geometric method

2. Ratio method

Answer the following questions :

Explain the concept of Elasticity of Demand.

Explain the importance of the concept of Elasticity of Demand for international trade.

Various factors influence Elasticity of Demand.

Total outlay method is one of the methods of measuring Elasticity of Demand.

Answer the details :

Explain Ratio method and Geometric method of measuring Elasticity of Demand.

What are the types of Price Elasticity of Demand?