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Chapter-3

The document discusses the concepts of demand elasticity, including price elasticity of demand and income elasticity of demand, explaining how changes in price and income affect the quantity demanded of goods. It outlines various types of elasticity, such as perfectly elastic, relatively elastic, and inelastic demand, along with their implications for consumer behavior. Additionally, it touches on the relationship between demand and related goods, including substitutes and complements.

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0% found this document useful (0 votes)
4 views10 pages

Chapter-3

The document discusses the concepts of demand elasticity, including price elasticity of demand and income elasticity of demand, explaining how changes in price and income affect the quantity demanded of goods. It outlines various types of elasticity, such as perfectly elastic, relatively elastic, and inelastic demand, along with their implications for consumer behavior. Additionally, it touches on the relationship between demand and related goods, including substitutes and complements.

Uploaded by

happierboy.12
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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AY. change se _intome _ _ &y Crelpigent of .ncome claasic _ St — j Types oh Tacome_E lasiciny ol Deana ——___ ee -| Positve income shastiaty of} Semone (E422) — 20 4. {Grearer tnaa_untty CEy on Less Coan unity CEy 6s) Egual ently Cey™ = — -o} Zeww_ Ancome alasudity. shy Aemoad (Ey =o} 2G Negative income _eaasic ty — SS —Hamand 18450). 4.8: [Positive Sncome asin demand (Fy 20) _ 8 e+ Tg Increase no lacome lads to Increase ta. ctemand APO commer oe & Vice-versa C18 Coiled posithe income Maskary Hk demond - — = — 1 HS is applied An note geod Datwe income Ste Heihy 4 ema -— fis bastases tivdded ints _auvee types 2 a i fRrastaty, -gpesker Mnon Unity Cey 24) pan os - Mac. percentage change to Ap ef -Sommodity — is. gresies he _ han the percentage change in Yncome of & Consumer, olner_ mG — 7 Ssings —sema}aing — Sne_same - a a - - Ain Soe_g. Rd 2_income chy & Consumer cre measured edong X=axis 2 _yromis yespertivelyy DO Is the dear demand Qweng, fi ‘weteakes Aocome jg \ec Shan QA 85 8 comma ty \ Elasiaity equa Dvaity Leyes The" grange. ‘n. St_ie equa) ke the ‘fe — lo enpautnen, thane tain cing the Same oe - - * - — - - ce <- —- a é > Hy Wh ~ ow 13+ | ; - — 7 oe. — en Ba _ Is ne given_ Rg DVS Sne_ demand curve ve ‘edieatea ince % Yne_consumer_i4_equad to Qd_ be Spemoding: - 4 i ‘lashing less. Mon sani eyes _ - cme. Maange in Qd Ws_less than tne “f+ change In jpeome wee Y . | ie - a [on Swe_g- Ba a Stowmodiy Legs Yan income &. _ | a teagurner. Dp -is_ane demana are. “7 ——-Be| Zew_Tncame _elesidty pk . demand (ey 20) y+, —h—quanty. demanded FE mai ng_unchanged _deapike i ___.. __| 8 demand Is ze 7 ee Shange -in_income _ 2 Mice-versa ; the larome etasidhy. \¢_Sald |S toe ‘ze. Jn case oly eutead Qoods ke Sad income Rasbicity -” - FE A ee n_AMe__figeincame % Bd ee _vneasored sdong Neavis _ ae {X Kearis_wapethehy: BD 16 the demand carve: Tk \ndicakes, FH we = fiat Ge vemoang ce ngtant at Soy rever Of shange 19 income BL [Sy the. consumer. oe igpave eae city demand (Ey <0) we —f —— Tip Gag & Cansamerx deerveaser ave tp increment to —fietom off consumer. Le ig agiied Son eior_gonda. - ee — a - — Tay Seg -ghan fig: DD is the. demand _Ussve- tonen_intome 1g snereades ating Qa decreases —fyem 08. 0G," T+ Indicafea the | negative best income a OA. _ 7 [ose Hroskeity of Dersana C (Egy) a Nas Crange tn Serer ; fonsxt, _Eacy = Corkidient of evogs: Serial ol | Aemond Ry = ace 6 good -4 Sx = Quantry ok good =x - . A@x = Unonge 5 in the_yvice df apes. - fo AB Cong to Yae_quontily demand wp ge te | ae SS aaa, Demand oo Possve Css Plast hy. Demand. (Ex 28). - jdeqatve Crass, Arostichig 6h. _Bermood_ Cony’ © Fheve_cwss _Shackicihy. op benend Cen | Rosine - S058 stacy ofp Demand Ex a Ley 0). — - | _ Wren Aine QD ol oh 8 coving 3 B_ pare sp related Secondly. - stead. into same _divection, ty Onss_shosticl ty OK —demond ig a {| Sov Ane yyy She steers Sroging dgenand Carve DD Shoss— | oe posite. xert ship Well Ane demond fpr _coWFe 2 Ans Ye —}- kea: Wren we prce Sh ten imereage , Ye demand fw ca kigce _ [alse increaser. Therelpre, bea 2 colfise One Substitute goods. [repos cots & “demona: C Er oO ___ When, the Qp._ Sho commodity, 2 geice_Sp xekeded | Coreen into. _Eipyerent _dicecthon, Awe Cross shoud ~ - {eik4 demand .\ ee We_ 1s. Apaied in. Correct seve cess assent & demand CexysD — Guanes Co . Fn Re fy: She dewooara “sep Aemond sere DD | snows, nve eli walt Awe dexnond fpr pet 2 Aine price 6 cars When Qe PCL Sf cove Aecvease , the dem land ty_peral “iaceengen Theretgre, Pad 2 Cow ang. Compleme~ fot goods: co When Nae _Craange | we price Gone — gers wns no Le eet & the demend fy arctaer gees: AV® cwss elashaly oh dem and is. ZeWD. Tk le... Agpicalde In Un elated Yee - - ena — pe cee When he “pnce_oky S88 Sis - | Seacse_nmcangel Suan ea ase wmvgaled So Sacha er as tp _tre Change ia its price Spar sptied < CoMmnod! S. ik = is. vente poe te ts at [Ao gro ny supped percentage an price_bh- —& comms. ot . = then We A 2 ee

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