2. Elasticityof demand is defined as the
responsiveness of the quantity of a good to
changes in one of the variables on which
demand depends-
Price of the commodity
Income of the Consumer
Various other factor
DEFINATION-’’The elasticity of demand
measures the response of the demand for the
commodity to change in price”.
3. Itexpress the response of quantity
demanded of a good to a change in its price
Price elasticity of demand called Elasticity of
demand as, price is the most important
determinant of demand.
4. The degree of responsiveness of the demand
for the commodity to a change in the income
of the consumer.
It is defined as Ratio of percentage change in
the quantity demanded of a commodity to
the percentage change in the income of
consumer
5. The degree of responsiveness in the demand
for one good to the change in the price of
the other good (Substitute or complement)
It is as changed in the price of one good
causes a change in the quantity of the other
good.
6. Elasticityat different points on a demand
curve is different.
There are demand curve which have the
same elasticity through out their length.
Perfectly Elastic Demand curve
Perfectly Inelastic Demand curve
Unitary Elastic Demand Curve
7. Horizontal straight line demand curve
Demand may increase or decrease to any
extent irrespective of no change in the
price.
8. Vertical Straight line demand curve
There will be no change in demand take
place due to change
in its price.
Elasticity of demand
is Zero
9. It is a Rectangular hyperbolic demand curve
When change in price brings about exactly
proportionate change in the quantity
demanded.
It means
(price*quantity) does
not change with the
change in price.
10. NATURE OF THE COMMODITY
Necessities and prestige
NUMBER OF SUBSITUTES
Tea city to- Brook bond tea
NUMBER OF USES OF A COMMODITY
Electricity- Heating, cooking, Lighting
JOINT DEMAND
Petrol and car
11. POSITOIN OF COMMODITY IN THE
CONSUMER’S BUDJET
Salt, Soap, Ink
URGENCY
Medicines
CONSUMER’S BEHAVIOUR
Tobacco, Alcohol, Drugs
