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12th Class Economics Solved Paper - Economics 2016 Delhi Set-I

  • question_answer
    Price elasticity of demand of good X is \[\mathbf{2}\] and of good Y is\[\mathbf{3}\]. Which of the two goods is more price elastic and why?

    Answer:

    Price elasticity of good \[X=2\]
    Price elasticity of good \[Y=3\]
    Good Y is more price elastic as compared to good X. There is inverse relationship between price and demand. For elasticity, negative sign is ignored and hence,
                                   \[=3>2\]
    Thus, price elasticity of good Y is more.


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