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(i) Define price elasticity of demand. Give the percentage formula of price elasticity of demand. 

(ii) As a result of 5% fall in the price of a good, its demand rises by 12%. Find the price elasticity of demand. 

(iii) What type of good is this? Give reasons.

(iv) Give two examples of such a good.

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(i) Price elasticity of demand may be defined as the degree of responsiveness of quantity demanded of a commodity in response to change in its price.

(iii) Relative elastic Demand i.e. Normal good. This type of good is highly price elastic demand because a small change in price leads to high change in demand. 

(iv) (a) Television as consumer durable. 

(b) Milk as consumer non-durable.

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