(i)The demand for a good is 300 units at Rs 20 per unit. If the price rises by Rs 2, find the new demand at price elasticity of demand being 2.(use proportionate method)
(ii) Distinguish between Normal Good and Inferior good.
(iii) What is a Questionnaire? State any three qualities of a good questionnaire.
Answers
Answer:
- Given, P=Rs.20; P1=Rs.23;
△P=P1−P=Rs.23−Rs.20=Rs.3
Percentage change in price =P△P×100=203×=15 per cent
Percentage change in quantity demanded =(−)30 per cent
Price elasticity of demand (Ed)=(−)PercentagechangeinpricePercentagechangein quantitydemanded
=(−)15%−30% = 2
Price elasticty of demand =2
2.In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand increases when consumer income decreases), unlike normal goods, for which the opposite is observed. Normal goods are those goods for which the demand rises as consumer income rises.
3.A questionnaire is a research instrument that consists of a set of questions or other types of prompts that aims to collect information from a respondent. A research questionnaire is typically a mix of close-ended questions and open-ended questions. Open-ended, long-form questions offer the respondent the ability to elaborate on their thoughts. Research questionnaires were developed in 1838 by the Statistical Society of London.
Write down the essential qualities of a good questionnaire:-
Limited number of questions:The number of questions should be limited as far as possible. ...
Simplicity:The language of the questions should be simple and easily understandable. ...
Logically arranged:The questions should be arranged logically. ...
Related to the points:Questions should be related to the point.