Question

Q-8) What is the shape of unitary elastic demand curve?
Q-9) What does the negative sign of Ed represents ?
Q-10)Define elastic demand.
Q-11)Differentiate between Primary & Secondary data
Q-12) Explain any three merits of Direct personal investigation.
Q-13) A 5% fall in the price of X leads to 10% rise in the demand for X. A 20% rise in th
6% fall in the demand fo Y. Calculate the price elasticity of demand of X & Y.
Q-14) Differentiate between Extension of demand & Increase in demand
Q-15) Explain the relationship between TU & MU with help of schedule & diagram
Q-16) Explain the situation of consumer's equilibrium through indifference curve approach​

Answer 1

answer 8. The demand curve with constant unitary elasticity is concave because at high prices, a one percent decrease in price results in more than a one percent increase in quantity. As we move down the demand curve, price drops and the one percent decrease in price causes less than a one percent increase in quantity.

answer 9. The negative sign means that the good is inferior, and, because the coefficient is less than one, demand for the good does not respond significantly to a change in income.