Relatively elastic refers to the degree to which the quantity of a good or service demanded changes in response to a change in its price. When a good or service is relatively elastic, a small change in price results in a relatively large change in the quantity demanded. This means that the demand for the good or service is sensitive to changes in price.
On the other hand, when a good or service is relatively inelastic, a small change in price results in a relatively small change in the quantity demanded. This means that the demand for the good or service is not very sensitive to changes in price.
There are several factors that can influence the elasticity of demand for a good or service. Some of these factors include the availability of substitutes, the importance of the good or service to the consumer, and the percentage of the consumer's budget that the good or service represents.
For example, if a consumer has several substitutes available for a particular good or service, they are more likely to switch to a substitute if the price of the original good or service increases. This means that the demand for the original good or service is relatively elastic. On the other hand, if a consumer has few or no substitutes available, they may be more likely to continue purchasing the original good or service even if the price increases. In this case, the demand for the good or service is relatively inelastic.
Another factor that can influence the elasticity of demand is the importance of the good or service to the consumer. If a good or service is essential to a consumer's daily life, they may be more likely to continue purchasing it even if the price increases. In this case, the demand for the good or service is relatively inelastic. On the other hand, if a good or service is not essential, a consumer may be more willing to switch to a substitute or do without if the price increases. In this case, the demand for the good or service is relatively elastic.
The percentage of the consumer's budget that a good or service represents can also influence its elasticity of demand. If a good or service represents a significant portion of the consumer's budget, they may be more sensitive to changes in price and the demand for the good or service may be relatively elastic. On the other hand, if a good or service represents a small portion of the consumer's budget, the consumer may be less sensitive to changes in price and the demand for the good or service may be relatively inelastic.
In conclusion, relatively elastic refers to the degree to which the quantity of a good or service demanded changes in response to a change in its price. The elasticity of demand can be influenced by the availability of substitutes, the importance of the good or service to the consumer, and the percentage of the consumer's budget that the good or service represents. Understanding the elasticity of demand can be helpful for businesses when setting prices for their products and for policymakers when considering the potential effects of taxes or other price changes on consumer behavior.
Others pointed to the climate, areas with a harsh climate would have been denied the conditions to form productive agriculture or exploit marketable resources. Previously, the undeveloped economies were called backward economies and the developed economies were known as advanced economies. ADVERTISEMENTS: All economies of the world are not equally developed. An example of something underdeveloped is a small fish that must get thrown back into the lake. It is not impossible for a country to achieve development, for this it is necessary to overcome some goals, make changes and a certain amount of hard work. Our mission is to provide an online platform to help students to discuss anything and everything about Economics.
What do you mean by developing economy? It is the situation of a region or country or region, when its capacity to produce social welfare or wealth, does not reach certain levels considered optimal, being in a backward state when making a comparison with the state of more prosperous countries. Now, we have got a complete detailed explanation and answer for everyone, who is interested! A developing country means that even though the As you can see in the figure above, a developing economy is sub-divided into Low, Middle, and High-Income groups. These days the under-developed countries are usually called developing or less developed countries LDCs. We conclude that under-developed country is one which is poor but which has the future possibility and prospect of removing poverty and raising the levels of living of its people by utilising the idle and under-utilised resources for production. Underdevelopment is a Relative Concept The concept of underdevelopment is a relative one because it is the comparison of quality of life between the economies that differentiates them in underdeveloped and developed. In a country like India, the undeveloped country is characterized by under or unutilized resources and there is a certain degree of co-existence.
So are disease, malnutrition, or long-term fighting. A high per capita income. Such countries are characterised by relative development gap in comparison to developed countries. What is the difference between developed and developing economy? While most of them are poor in nature, they have diverse physical and human resources, socio-political conditions and culture. A high National Income does not imply Economic Welfare.
The history of the world has been one of extreme violence and conquest. Last Update: October 15, 2022 This is a question our experts keep getting from time to time. What are the characteristics of poor? For any nation across the world, an underdeveloped economy can be a major concern. When a country is characterized by mass poverty that is highly chronic and there are obsolete methods of production and social organisation, it is referred to as an underdeveloped country. Industrial and service sectors.
Developed nations are generally categorized as countries that are more industrialized and have higher per capita income levels. From children to adults anybody can get on to the site, at any point of time to expand their horizon of knowledge. An underdeveloped economy is that economy which is characterized by the widespread poverty, the low economic performances of the economy as compared to advanced economies and under utilization of production potential. Most importantly, there is a minor gap between the poor and the rich. The understanding of the underdeveloped economy definition also involves the understanding of foreign trade and its impact on the economy. Refer to Vedantu for free chapter-wise solutions and get free access to various other online resources and improve your learning in several folds. In such an economy, the state or the country fails to meet the necessary standard of living for the major section of a population.
It reflects the financial capability, status of citizens, their living and health conditions, and similar other things that are closely associated with the economy. Similar to Professor Viner, Eugene Staley has also provided a definition. There is a constant struggle among people to survive. On the other hand, high-income economies contain nearly 16 per cent of the world population but account for major portion, i. Unemployment; Poverty; child marriage; Injustice; High population growth rate; illiteracy; Corruption; High Dependence on Agriculture; Economic inequality; Corruption; Lack of structural, institutional and technical change.
What are the main features of underdeveloped economy PDF?
Underdeveloped countries are characterized by lack of industrial development. Figures in brackets are percentage of the World totals in the respective columns. The First World consists of the Western developed countries whereas the erstwhile Communist Countries led by Soviet Russia were referred to as the Second World. In fact, there are various other factors like education, health, political stability, prosperity cultural and social , etc. Other Words from underdeveloped More Example Sentences Learn More About underdeveloped. Therefore, the economics of the world have been classified into developed economies and under-developed economies.
By now, we know that the National Income and Economic Welfare are two separate entities. Most importantly, there is a significant amount of difference between the rich and the poor. Most of the countries of Africa, Asia, Latin America and a few countries of Europe can be included in this group. There is a general causal relationship among all these conditions. Underdevelopment Sustains Absolute Poverty Although, concept of underdevelopment is a relative concept but it sustains absolute poverty.
Unemployment; Poverty; child marriage; Injustice; High population growth rate; illiteracy; Corruption; High Dependence on Agriculture; Economic inequality; Corruption; Lack of structural, institutional and technical change. Thus there is no way out; and underdevelopment continues, maintained by expensive loans and inappropriate technology transfers. What do you mean by underdeveloped? Answer: Per capita income is the main point for economic development of any country. Development can be synonymous with industrialization, product growth, consumption and employment, with a per capita income within the world average 6 , however, the institutions that measure this adopt the one they consider most correct. While the definitions of Eugene Staley, Samuelson, Bauer and Yamey, Todaro, Gunnar Myrdal and United Nations are poverty and low income based, but the definitions of Jacob Viner and Planning Commission are under-utilised resources based.
Underdeveloped Economy and Strengths of Indian Economy
Key Strengths of the Indian Economy As a country, India has some strong macro-fundamentals and performance. It is so because countries are at different stages of economic development. You consent to our cookies if you continue to use our website. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. In this sense, it can be said that there are developed and underdeveloped countries. GNP Per Capita, Growth Rate and Population in Some Developed and Developing Countries: It may be noted that all high per capita income countries are not developed countries. According to estimates, our environmental debt burden in country is 6 percent to GDP.