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Take–away of today’s lecture

Practical Cases on Demand and
Elasticity
 Lecture Outcome

• Capability to solve the numericals and comment on

the elasticity
 Lets recall

1. What are the types of elasticity of demand?

2. What factors affect the elasticity of demand?
Let’s read a case
What’s your observation???
Let’s solve elasticity…
• The demand for apples in a small town was 200 kg
when the price was Rs 20 per kg. It expanded to
250 kg when the price was reduced to Rs 18 per kg.
What is the elasticity of demand for apples in the
town?
Let’s take second case
Let’s take one more
Polling question
The 'law of demand' implies that

a. As prices fall, quantity demanded increases

b. As prices rise, quantity demanded increases

c. As prices fall, demand increases

d. As prices rise, demand decreases
Let’s discuss last one