Question 4 — What is price Elasticity of Demand? Explain the various methods used for measuring price Elasticity of Demand.

Government College Ludhiana East • Commercial Law — B.Com (Sem I) | Prepared by: Jeevansh Manocha

Read Before Attempting Q4

Question 4, dealing with Price Elasticity of Demand and its Methods of Measurement, is one of the most detailed and technically demanding questions in the Microeconomics syllabus of Panjab University. It contains multiple interlinked concepts, rigorous derivations, and requires clear understanding of five major measurement methods along with their underlying assumptions, mathematical foundations and conceptual distinctions.

The complete academic explanation — including formal derivations, diagrammatic interpretations, properties of linear and non-linear curves, slope–elasticity distinction, marginal revenue linkage, midpoint logic, and method-wise applications — is best studied directly from the officially recommended textbook:

📘 T.R. Jain & V.K. Ohri — Microeconomics (B.Com Semester I, Panjab University)
This book provides the exact wording, structured diagrams, solved illustrations, and analytical detail that aligns with Panjab University’s evaluation standards.

Why this note?
Because Q4 requires: • Multi-method explanation (Total Outlay, Proportionate, Point Method, Arc Method, Revenue Method) • Precise mathematical handling and stepwise derivations • Multiple diagrammatic supports • A level of detail that is expected to match textbook presentation

Therefore, to maintain syllabus accuracy and academic quality, students should rely on the textbook’s comprehensive exposition for this specific question rather than abbreviated notes.

This advisory has been provided because this question is both highly important and frequently repeated in university examinations. While it has a strong likelihood of reappearing, it should still be treated as a recommended topic for in-depth academic preparation rather than a guaranteed prediction.
Book Reference Required

Additional Study Recommended

This question involves advanced concepts and requires deeper understanding. Students must refer to the official Panjab University prescribed textbook, “Microeconomics” by T.R. Jain & V.K. Ohri along with these structured notes for complete exam-oriented preparation.