1. Perfectly Elastic Demand (Ed = ∞) Price mein bahut small change se demand completely change ho jaati hai. 2. Perfectly Inelastic Demand (Ed = 0) Price change hone ke baad bhi quantity demanded change nahi hoti. 3. Relatively Elastic Demand (Ed > 1) Quantity demanded mein percentage change, price ke percentage change se zyada hota hai. 4. Relatively Inelastic Demand (Ed < 1) Quantity demanded mein percentage change, price ke percentage change se kam hota hai. 5. Unitary Elastic Demand (Ed = 1) Quantity demanded aur price mein percentage change equal hota hai.

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Characteristics

* Demand ki responsiveness ko measure karta hai. * Price elasticity mein price aur quantity demanded ka relationship dekha jaata hai. * Different goods ki elasticity different hoti hai. * Necessities generally inelastic hoti hain. * Luxury goods generally more elastic hoti hain. * Time period bhi elasticity ko affect karta hai.

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Advantages

* Business firms ko pricing decisions lene mein help karta hai. * Government ko taxation policy banane mein useful hai. * Producers ko demand predict karne mein help karta hai. * International trade mein pricing decisions ke liye useful hai. * Necessary aur luxury goods ki demand behaviour samajhne mein help karta hai.

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Disadvantages

* Elasticity ko accurately measure karna difficult ho sakta hai. * Real life mein demand ko sirf ek factor affect nahi karta. * Consumer preferences time ke saath change hoti rehti hain. * Different situations mein same good ki elasticity different ho sakti hai.

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Examples

* Salt: Demand relatively inelastic — price badhne par consumption bahut kam change hota hai. * Luxury car: Demand relatively elastic — price badhne par buyers purchase postpone kar sakte hain. * Essential medicines: Generally inelastic demand. * Restaurant meals: Price-sensitive consumers ke liye relatively elastic ho sakte hain.

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Interesting Fact

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Previous Topic

Money & Banking

Elasticity of Demand

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