The price elasticity of demand in the words of Marshall can be defined as, the elasticity of demand in a market is great or small according as the amount demanded increases much or little for a given fall in price and diminishes much or little for a given rise in price. In this article we will discuss about:- 1. Definitions [...]
Prof. Marshall works out a relationship between price elasticity of demand and total expenditure. He estimates the degree of price elasticity of demand depending on the change in total expenditure caused by a change in own price of the commodity. He states three different situations, as under: Situation 1 - Ed = Unitary or Ed = 1: Elasticity of demand [...]
Read this article in Hindi to learn about the various degrees of price elasticity of demand for a particular commodity. (1) सापेक्षतः लोचदार माँग (Relatively Elastic Demand): जब किसी वस्तु की कीमत में परिवर्तन होने के फलस्वरूप उसकी माँग में अधिक आनुपातिक परिवर्तन हो जाता है तब ऐसी वस्तु की माँग को सापेक्षतः लोचदार माँग कहते हैं । अर्थात्, दूसरे [...]