|
S.no
|
Degree of Price Elasticity of Demand
|
Type
|
Response to quantity Demanded
|
Shape of demand curve
|
|
1
|
E=1
|
|
|
|
|
2
|
E <1
|
|
|
|
|
3
|
E=1
|
|
|
|
|
4
|
E>1
|
|
|
|
|
5
|
E=∞
|
|
|
|
|
Q1
|
The law of demand state inverse and proportional
relationship between price and demand
|
|
Q2
|
Demand of a commodity falls due to
rise in its price alone
|
|
Q3
|
As a result of fall in the number
of consumers of a commodity , there will be contraction in its demand
|
|
Q4
|
A change in quantity demanded as a
result of change in price will mean movement on the demand curve
|
|
Q5
|
There is increase in demand of a
good when price of substitute good increases
|
|
Q6
|
Fall in product price causes the
market demand curve to shift upward to right
|
|
Q7
|
If the good X and Y are
substitutes , a rise in price of X will result in the rightward shift in
demand curve of Y
|
|
Q8
|
The demand of a commodity always
increases with increase in price of other good
|
|
Q9
|
The demand of good increases with
the increase in the income of its buyers
|
|
Q10
|
Demand curves slopes downward from
left to right
|
