When is the demand for a good said to be inelastic?
Inelastic demand is a situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price.
| Units of labour | Average Product (Units) | Marginal Product (Units) |
| 1 | 8 | - |
| 2 | 10 | - |
| 3 | - | 10 |
| 4 | 9 | - |
| 5 | - | 4 |
| 6 | 7 | - |
When the price of a good rises from Rs 20 per unit to Rs 30 per unit, the revenue of the firm producing this good rises from Rs 100 to Rs 300. Calculate the price elasticity of supply.
Explain the law of diminishing marginal utility with the help of a total utility schedule.
