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College · B.Com (Hons) — DU Official Syllabus · Semester 5
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| Year | Question paper | Document | Access |
|---|---|---|---|
| 2024-25 | Business Economics · Semester 5 · 2024-25Searchable full text available | Pages —1.2 MB |
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Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. Demand is elastic when this value exceeds 1, unit elastic when it equals 1, and inelastic when it is less than 1. Key determinants include the availability of substitutes, whether the good is a necessity or luxury, the proportion of income it represents, and the time period under consideration. See the diagrams, formula, and table below for a full worked breakdown.
Appeared in: 2022,2023,2024
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Explain the concept of price elasticity of demand. Discuss the factors that determine whether a good has elastic or inelastic demand, and derive the formula used to measure it.
3×Appeared in: 2022 · 2023 · 2024