A consumer carries ₹ 50000 with her. Case A: She (consumer) used to spend same amount (i.e., ₹500) on petrol in each week; Case B: she used to spend 5 litres of petrol in each week. Calculate the elasticity of demand in each case (A & B separately) till the entire amount got spent and justify your answer using the appropriate equation or diagram.
A consumer carries ₹ 50000 with her. Case A: She (consumer) used to spend same amount (i.e., ₹500) on petrol in each week; Case B: she used to spend 5 litres of petrol in each week. Calculate the elasticity of demand in each case (A & B separately) till the entire amount got spent and justify your answer using the appropriate equation or diagram.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A consumer carries ₹ 50000 with her. Case A: She (consumer) used to spend same amount (i.e., ₹500)
on petrol in each week; Case B: she used to spend 5 litres of petrol in each week. Calculate the
demand
appropriate equation or diagram.
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