ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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quantity demanded responds to a change in price.
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quantity demanded responds to a change in income.
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price responds to a change in demand.
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demand responds to a change in supply.
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Detailed explanation-1: -Price elasticity of demand measures how much the quantity demanded responds to changes in the price. If a demand curve is elastic, total revenue falls when the price rises. If it is inelastic, total revenue rises as the price rises.
Detailed explanation-2: -Income elasticity of demand measures how much the quantity demanded of a good responds to a change in consumers’ income. It is computed as the percentage change in the quantity demanded divided by the percentage change in income.
Detailed explanation-3: -The cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demanded of one good when the price for another good changes.
Detailed explanation-4: -The price elasticity of demand measures the responsiveness of quantity demanded to changes in price; it is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
Detailed explanation-5: -elastic. Demand is said to be elastic, when the quantity demanded is very responsive to changes in price.