Chapter: Elasticity of Demand· Economics

Identify and explain the concept (any three): When the price of apples falls by 10% Vinay increases his demand for apples by 10%.

Q.2 (A) (i) Identify and explain the concept (any three): When the price of apples falls by 10% Vinay increases his demand for apples by 10%.

Doubtly Asked 29 Oct 2026 Board exam · July 2024 hsc 12th Save WhatsApp Report

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Answer: Unitary elastic demand (Ed = 1)

Concept: When a given percentage change in price causes an equal percentage change in quantity demanded, demand is unitary elastic.

Explanation: Price of apples falls by 10% and Vinay’s demand rises by exactly 10%. \(E_d = \dfrac{10\%}{10\%} = 1\). The demand curve is a rectangular hyperbola and total expenditure on apples remains the same.

Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report

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Identify and explain the concept (any three): When the price of apples falls by 10% Vinay increases his demand for apples by 10%.

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