Question
Consider the following statements regarding the concept
of elasticity of demand: If the price elasticity of demand is greater than 1, the demand is considered inelastic. Â In the case of unitary elastic demand, total revenue remains unchanged with price changes. Â Perfectly elastic demand implies that consumers will buy an infinite quantity at a particular price but none at any other price. Â Which of the statements given above are correct? ÂSolution
Explanation: Â
- Statement 1 is incorrect: If price elasticity of demand is greater than 1 , the demand is considered elastic , not inelastic. Â
- Statement 2 is correct: When demand is unitary elastic (elasticity = 1) , total revenue remains unchanged despite price changes. Â
- Statement 3 is correct: A perfectly elastic demand curve means that at a particular price, demand is infinite , but if the price changes, demand falls to zero. Â
More Communication Questions
2Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 4Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 5Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 19Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 70...
6000 3002 1503 ? 378.75 191.375 97.6875
...If  204    196       223   x  284
Then, what is the average of the numbers of the above series?
...8   24    12    ?   18     54
3 ? 7 16 71 346
...104   106   110   113   ?   126
12, 18, 28, 42, 52, ?
18Â Â Â Â Â Â Â Â Â Â Â Â 29 Â Â Â Â Â Â Â Â Â Â Â Â Â Â 51 Â Â Â Â Â Â Â Â 84 Â Â Â Â Â Â Â Â 128 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 182
5, 8, 17, ?, 37, 48
(32.03 + 111.98) ÷ 18.211 = 89.9 – 20.23% of ?
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