a) Why the price elasticity of salt is low and price elasticity of Toyota car is high?
b) Why the magnitude of elasticity different at each and every point of demand curve?
c) What is the cross elasticity of demand if two commodities are substitute and if two commodities are compliment of each other?
d) What is the distinction between inferior goods and normal goods and between an extension in demand and rise in demand?
e) Why is the demand for durable goods less stable then the demand for non durable goods?
f) What is the advantage for using price elasticity rather than the slope of the demand curve or its inverse to measure the responsiveness in the quantity demanded of a commodity to a change in its price?
g) Why and how is the formula for arc price elasticity of demand different from the formula for point price elasticity of demand?
h) State the relationship between the total revenue of firm and price elasticity of demand for price increase along a linear demand curve , and also explain the reason of the relationship