Elasticity of Demand | CA Foundation Business Economics | Class # 17 |

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__________________________________________________________________ Hey Everyone:) Welcome to the CA Foundation Classes ❤️
Class # 17 of Paper 4 : Theory of Demand & Supply
In this video, we will be starting Unit I of Chapter 2 and we will discuss about Elasticity of Demand
Determinants of Price Elasticity of Demand
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[@Adhixxyy]

51:17 Sir, I have a question regarding tied demand and elasticity. You mentioned that the demand for goods that are tied to others (like petrol and cars) is normally inelastic. However, if the price of petrol decreases significantly-let’s say there’s a large percentage drop in the price of petrol-this could potentially encourage new car buyers who had postponed their purchase due to high petrol costs. These potential car buyers would now purchase cars, leading to a greater demand for petrol. Additionally, existing car owners would also likely consume more petrol, though only up to a practical limit. Therefore, wouldn’t this substantial price drop in petrol lead to both an increase in car purchases and a subsequent increase in petrol demand? In such a case, doesn’t the demand for petrol become elastic because the percentage change in price has a significant impact on demand for both cars and petrol? The price decrease in petrol triggers an increase in car sales, which further fuels a rise in petrol demand. Doesn’t this suggest that in this specific scenario, tied demand becomes ELASTIC? pls reply

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In total outlay method what about perfectly inelastic and perfectly elastic

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sir total revenue method bhi price elasticity ka method h?

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