PRESENTATION BY:   PRACHI MITTAL
 Elasticityof demand is defined as the  responsiveness of the quantity of a good to  changes in one of the variables on w...
 Itexpress the response of quantity  demanded of a good to a change in its price Price elasticity of demand called Elast...
 The   degree of responsiveness of the demand  for the commodity to a change in the income  of the consumer. It is defin...
 The  degree of responsiveness in the demand for one good to the change in the price of the other good (Substitute or com...
 Elasticityat different points on a demand  curve is different. There are demand curve which have the  same elasticity t...
 Horizontal straight line demand curve Demand may increase or decrease to any  extent irrespective of no change in the  ...
 Vertical  Straight line demand curve There will be no change in demand take  place due to change  in its price. Elasti...
 It is a Rectangular hyperbolic demand curve When change in price brings about exactly  proportionate change in the quan...
 NATURE   OF THE COMMODITY   Necessities and prestige NUMBER OF SUBSITUTES   Tea city to- Brook bond tea NUMBER OF USES...
 POSITOIN  OF COMMODITY IN THE  CONSUMER’S BUDJET  Salt, Soap, Ink URGENCY  Medicines CONSUMER’S BEHAVIOUR   Tobacco, A...
THANK YOU
Upcoming SlideShare
Loading in …5
×

Elasticity of demand

979 views

Published on

Published in: Business, Economy & Finance
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
979
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
95
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Elasticity of demand

  1. 1. PRESENTATION BY: PRACHI MITTAL
  2. 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 factorDEFINATION-’’The elasticity of demand measures the response of the demand for the commodity to change in price”.
  3. 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. 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. 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. 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. 7.  Horizontal straight line demand curve Demand may increase or decrease to any extent irrespective of no change in the price.
  8. 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. 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. 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. 11.  POSITOIN OF COMMODITY IN THE CONSUMER’S BUDJET Salt, Soap, Ink URGENCY Medicines CONSUMER’S BEHAVIOUR Tobacco, Alcohol, Drugs
  12. 12. THANK YOU

×