This is for CA-CPT Economics for Chapter Elasticity of Demands.

1. Economics – Lecture 4 Elasticity of Demands Balanced Sheets Ph : +91 9462550350 www.balancedsheets.co.in

6. Types of elasticity Zero Elasticity (Perfect Inelastic Demand) Quantity 0 Price 5 4 Demand 100 1. An increase in price . . . 2. . . . leaves the quantity demanded unchanged.

7. Types of elasticity Elasticity (0-1) (Inelastic Demand) Quantity 0 Price 5 90 Demand 1. A 25% increase in price . . . 2. . . . leads to an 10% decrease in quantity demanded. 4 100

8. Types of elasticity Unit Elasticity (Elasticity Equals to “1”) Quantity 0 Price 2. . . . leads to a 25% decrease in quantity demanded. 4 100 5 75 1. A 25% increase in price . . . Demand

9. Types of elasticity Elasticity (>1) (Elastic Demand) Quantity 0 Price Demand 4 100 5 50 1. A 25% increase in price . . . 2. . . . leads to a 50% decrease in quantity demanded.

10. Types of elasticity Infinite Elasticity (Perfectly Elastic Demand) Quantity 0 Price 4 Demand 2. At exactly 4, consumers will buy any quantity. 1. At any price above 4, quantity demanded is zero. 3. At a price below 4, quantity demanded is infinite.