The Elasticity Of Demand And Its Measurement

Arrange the following elasticities of demand in increasing order.
(A) Elastic Demand
(B) Perfectly Elastic Demand
(C) Inelastic Demand
(D) Unitary Elastic Demand
(E) Perfectly Inelastic Demand
Choose the correct answer from the options given below :

Price of a commodity increases. The demand is inelastic if:

Arrange the elasticity (ed) as we move upwards along a linear demand curve_ (A) ed = 1 (B) ed =0 (C) ed =Iinfinity (D) ed 1 (E) ed 1Choose the correct answer from the options given below :

The formula for computing price elasticity of demand is

If aggregate demand exceeds aggregate supply at full employment level, the gap which occurs is known as

Suppose the price elasticity of demand for a good is (-)1. At a price of ₹4 per unit, demand for the good is 40 units. Suppose the price of the good increases to ₹6 per unit, and as a result, the demand for the good will be_____

Identify the Demand for foreign exchange-
A. Demand for domestic goods by foreigners
B. Purchase of financial assets of a foreign country.
C. Studying abroad
D. Transfer made by foreigners to resident
E. Import of goods
Choose the correct answer from the options given below :

Case study: Read the given case study and answer the following questions :
“COVID-19 to have significant deflationary impact due to demand evaporation”. Ruling out any impact of stimulus on the price situation. Chief Economic Advisor K.V. Subramaniam on Thursday said the COVID-19 pandemic has severely dented the demand for non-essential goods, creating deflationary conditions. He also said that a good part of the Rs. 20 lakh crore stimulus package is designed in a manner that the fiscal deficit remains under control.
COVID has significant deflationary impact because demand especially for non-essential goods and services will go down significantly. Therefore, it is unlikely that there would be too much inflationary impact through fiscal deficit or stimulus package". Subramaniam told in an interview.
“The proposed stimulus package will generate demand by infusing liquidity into the system and thus perk up the economy”, the CEA said.
“RBI is also taking some strategic actions to control the impact of COVID-19 situation”, CEA further added.

When Elasticity of Demand is 1 at every point on the Demand Curve, this curve is known as: