This slide is on Elasticity Of Demand. It Contains short information about elasticity of demand

1. Presentation On
ELASTICITY
OF
DEMAND

2. Prepared By
Vaibhav Pradhan

3. Definition Of Price Elasticity Of Demand
• The change in the quantity demanded of a
product due to a change in its price is known
as Price elasticity of demand. Thus, the
sensitiveness or responsiveness of demand to
change in price is as called elasticity of
demand

4. Kinds Of Price Elasticity Of Demand
1) Perfectly elastic demand
2) Relatively elastic demand
3) Elasticity of demand equal to utility
4) Relatively inelastic demand
5) Perfectly inelastic demand
Let Us See Some Views On Them

5. Perfectly elastic demand
P
R
I
C
E
y
0 x
Perfectly elastic
demand curve
D D
When the
demand for a
product changes
–increases or
decreases even
when there is no
change in price,
it is known as
perfect elastic
demand.

6. Relatively elastic demand
Relatively elastic
demand curve
P
R
I
C
E
demand0 x
y
D
D
When the
proportionate
change in
demand is more
than the
proportionate
changes in
price, it is
known as
relatively elastic
demand.

7. Elasticity of demand equal to utility
Elasticity of
demand equal
to utility curve
y
x0 demand
P
R
I
C
E
D
D
When the
proportionate
change in
demand is equal
to proportionate
changes in price,
it is known as
unitary elastic
demand

8. Relatively inelastic demand
Relatively inelastic
demand curve
XO
Y
demand
D
D
P
R
I
C
E
When the
proportionate
change in demand
is less than the
proportionate
changes in price, it
is known as
relatively inelastic
demand

9. Perfectly inelastic demand
demand
D
D
Perfectly inelastic
demand curve
0
Y
X
P
R
I
C
E
When a change in
price, howsover
large, change no
changes in quality
demand, it is known
as perfectly inelastic
demand

10. ALL KINDS OF DEMAND CAN BE SHOWN
IN ONE DIAGRAM AS FOLLOW
D
D1
D2
D3
D4
D5
Y
X0
DEMAND
P
R
I
C
E
WHERE
D1) Perfectly elastic
demand
D2)Relatively elastic
demand
D3)Elasticity of demand
equal to utility
D4)Relatively inelastic
demand
D5)Perfectly inelastic
demand

11. Measurement Of Price Elasticity Of
Demand
There are main methods like
1. Percentage method or proportionate
method
2. Total outlay method or total revenue
method
3. Geometric method or point method
4. Arc elasticity of demand

12. Thanking You All

13. ******THEEND******