Chapter 3 of 19
Concept Maps
Elasticity of Demand — Concept Maps
ICSE · Class 12 · Economics
4 concept maps of Elasticity of Demand for ICSE Class 12 Economics, each also written out as a text outline. Part of the ICSE Class 12 Economics syllabus.
62 questions36 flashcards5 formulas & key relations5 concepts
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4 Concept Maps
Types and Degrees of Elasticity of Demand — Complete Overview
The map in words
- Elasticity of Demand
- Price Elasticity Ed
- Perfectly Inelastic
- Ed equals 0
- Vertical Demand Curve
- Example Insulin
- Inelastic
- Ed less than 1
- Steep Demand Curve
- Example Salt Foodgrains
- Unit Elastic
- Ed equals 1
- Rectangular Hyperbola
- TE Remains Constant
- Elastic
- Ed greater than 1
- Flat Demand Curve
- Example Luxury Goods
- Perfectly Elastic
- Ed equals Infinity
- Horizontal Demand Curve
- Example Perfect Substitutes
- Perfectly Inelastic
- Income Elasticity Ei
- Positive Ei
- Normal Goods
- Luxury if Ei greater than 1
- Necessity if Ei less than 1
- Negative Ei
- Inferior Goods
- Example Coarse Grains
- Zero Ei
- Neutral Goods
- Example Salt Matches
- Positive Ei
- Cross Elasticity Ec
- Positive Ec
- Substitute Goods
- Example Tea and Coffee
- Negative Ec
- Complementary Goods
- Example Petrol and Cars
- Zero Ec
- Unrelated Goods
- Example Milk and Cloth
- Positive Ec
- Price Elasticity Ed
Total Expenditure Method — Correct Decision Rules
The map in words
- Price Changes
- Direction of Change in Total Expenditure
- TE Rises when Price Falls: Ed Greater Than 1
- Elastic Demand
- Demand Curve Flatter
- Elastic Demand
- TE Falls when Price Falls: Ed Less Than 1
- Inelastic Demand
- Demand Curve Steeper
- Inelastic Demand
- TE Unchanged when Price Falls: Ed Equals 1
- Unit Elastic Demand
- Rectangular Hyperbola Shape
- Unit Elastic Demand
- TE Rises when Price Falls: Ed Greater Than 1
- Direction of Change in Total Expenditure
Elasticity of Demand - Full Chapter Concept Map
The map in words
- Elasticity of Demand
- Price Elasticity
- Perfectly Inelastic
- Ed equals 0
- Vertical Demand Curve
- Example Insulin
- Inelastic
- Ed less than 1
- Steep Demand Curve
- Example Food Grains
- Unit Elastic
- Ed equals 1
- Rectangular Hyperbola
- Total Expenditure Constant
- Elastic
- Ed greater than 1
- Flatter Demand Curve
- Example Luxury Goods
- Perfectly Elastic
- Ed equals Infinity
- Horizontal Demand Curve
- Example Perfect Substitutes
- Perfectly Inelastic
- Income Elasticity
- Positive
- Normal Goods
- Income and Demand move together
- Negative
- Inferior Goods
- Income and Demand move opposite
- Zero
- No change in demand
- Essential necessities
- Positive
- Cross Elasticity
- Positive
- Substitute Goods
- Example Tea and Coffee
- Negative
- Complementary Goods
- Example Milk and Sugar
- Zero
- Unrelated Goods
- Example Milk and Cloth
- Positive
- Measurement Methods
- Percentage Method
- Change in Demand divided by Change in Price
- Mathematical Precision
- Total Expenditure Method
- Price falls and TE rises means Elastic
- Price falls and TE falls means Inelastic
- TE constant means Unit Elastic
- Geometric Method
- Lower Segment divided by Upper Segment
- Point Elasticity
- Tangent for Curved Demand
- Arc Method
- Average of two points
- Mid-point formula
- Overcomes direction bias
- Percentage Method
- Factors Affecting
- Nature of Commodity
- Necessity vs Luxury
- Substitutes Available
- More substitutes means more elastic
- Proportion of Income
- Higher proportion means more elastic
- Number of Uses
- More uses means more elastic
- Time Period
- Longer time means more elastic
- Habits and Addiction
- Habitual goods are inelastic
- Nature of Commodity
- Applications
- Producer Pricing
- Price Discrimination
- Monopoly Pricing
- Tax Policy
- Tax inelastic goods for revenue
- International Trade
- Terms of Trade
- Paradox of Plenty
- Bumper crop reduces farm income
- Factor Pricing
- Inelastic demand means higher wages
- Producer Pricing
- Price Elasticity
Elasticity of Demand
The map in words
- Elasticity of Demand
- Price Elasticity of Demand
- Income Elasticity of Demand
- Cross Elasticity of Demand
- Applications and Importance
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Explore DiagramsFrequently Asked Questions
What are the important topics in Elasticity of Demand for ICSE Class 12 Economics?
Key topics in Elasticity of Demand include Degrees of Price Elasticity of Demand, Methods of Measuring Price Elasticity of Demand, Total Expenditure Method and Comparison of Elasticity, Income Elasticity of Demand. Study these first, then practise questions on each for the ICSE Class 12 board exam.
What do the concept maps for Elasticity of Demand show?
The 4 maps show how the ideas in Elasticity of Demand connect: Types and Degrees of Elasticity of Demand — Complete Overview; Total Expenditure Method — Correct Decision Rules. Each map is also written out as an outline on this page.
How should I revise Elasticity of Demand for the ICSE Class 12 board exam?
Learn the core ideas first, then work through the 62 practice questions on Elasticity of Demand. Revise definitions regularly and use flashcards for quick recall before the exam.
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Practice Quiz
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Important Questions
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Revision Notes
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Formula Sheet
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Chapter Summary
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Study Plan
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Flashcards
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Syllabus
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