SHALOM HILLS INTERNATIONAL SCHOOL

Class – XI

Elasticity of demand
Level - 1
1. What will be the elasticity of demand of air conditioner?
2. Identify the correct pair of items from the following:
Column I Column II
A. Bajra 1. Inferior goods
B. Consumer equilibrium 2. Luxury goods
C. Elastic demand 3. Leftward slope
D. Ed is infinity 4. Giffen goods

3. Write the formula of price elasticity of demand.

4. Differentiate between perfectly elastic and perfectly inelastic demand.

Level – 2
1. If a good can be used for many purposes, the demand for it will be elastic. Why?
2. Explain the various degrees of price elasticity of demand.
3. Explain any four factors affecting price elasticity of demand.

Level – 3

1. The price elasticity of a good is -0.5. At a price of Rs 40 per unit its demand is 300 units. At
what price will its demand increase by 20 percent? (Ans: Rs 24)
2. A consumer buys 10 units of a commodity at a price of Rs. 10 per unit. He incurs an
expenditure of Rs. 200 on buying 20 units. Calculate price elasticity of demand by the
percentage method. Comment upon the shape of demand curve based on this
information. (Ans: Infinity)
3. Price Elasticity of Demand of a good is (-)1. At a given price, the consumer buys 60 units of
the good. How many units will he buy if the price falls by 10%? (Ans: 66 units)